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Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Labor Product Overhead Hours (dlh) A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72.000 10,000 16 Totals $320,000 20.000 dlh 20 dih 20 dih 5). Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. a. $49.60 per unit b. 899.20 per unit c. $28.80 per unit d. S64.00 per unit The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - Finishing and Production. The overhead budget for the Finishing Department is $550,000, using 500,000 direct labor hours. The overhead budget for the Production Department is $400,000 using 80,000 direct labor hours. 6). If the budget estimates that a table lamp will require 2 hours of finishing and I hours of production, how much factory overhead will the Kaumajet Factory allocate to each unit of table lamp using the multiple production department factory overhead rate method with an allocation base of direct labor hours? a $6.33 b. $4.91 c. $5.00 d. $7.20 1 7). Activity rates are determined by a. dividing the actual cost for each activity pool by the actual activity base for that pool. b. dividing the cost budgeted for each activity pool by the estimated activity base for that pool. c. dividing the actual cost for each activity pool by the estimated activity base for that pool. d. dividing the cost budgeted for each activity pool by the actual activity base in that pool

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