The Ramapo Company produces two products, Blinks and Dinks. They are manufacture

Question

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. All of the machine hours take place in the Fabrication department, which has an estimated overhead of $91,569. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $102,421. The Ramapo Company uses a single overhead rate to apply all overhead costs bused on labor hours. What is the overhead cost per unit for Dinks? Round to the nearest cent. Select the correct answer. $35.50 $4.09.70 $70.99 $28.85

Explanation / Answer

Products Number of units Labor hrs per unit Total labor hrs Total Labor hrs for both the products Total overhead cost Fabrication-overhead cost Assembly-Overhead cost Overhead cost per hour Total overhead cost for Dinks Overheadcost per unit for Dinks Blinks 977 4 3908 21860 $193,990.00 $91,569.00 $102,421.00 Dinks 2244 8 17952 $8.87 $159,309.63 $70.99

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