Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication...

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Accounting

Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are as follows:
Product Number of
Units Direct Labor Hours
Per Unit Machine Hours
Per Unit
Blinks 1,05727
Dinks 2,03286
All of the machine hours take place in the Fabrication department, which has an estimated overhead of $113,800. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $83,300.
Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs. The single plantwide rate (rounded to the nearest cent), if it is based on machine hours instead of labor hours, is
a. $12.58 per machine hour
b. $23.14 per machine hour
c. $8.05 per machine hour
d. $10.06 per machine hour

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