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 hrsper 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?
Answer
|
$77.00 |
||
|
$39.00 |
||
|
$19.50 |
||
|
$59.92 |
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