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Question: 1 the ramapo company produces two products blinks and dinks...

Question details

1.

The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.


Product
Number of
units
Labor hours
per unit
Machine hours
per unit
Blinks 1,000 4 5
Dinks 2,000 2 8


All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000.

The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks?

a.$19.50

b.$59.92

c.$77.00

d.$39.00

2.

The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments—Fabrication and Assembly. Data for the products and departments are listed below.


Product
Number of
Units
Labor Hours
Per Unit
Machine Hours
Per Unit
  Rings 930 2 3
  Dings 2,680 9 11

All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $82,400. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $73,400.

The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours.

What is the overhead cost per unit for Rings?

a.$53.52

b.$3.92

c.$13.31

d.$43.16

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