Reference no: EM132750502

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            Direct Labor Hours Per Unit            Machine Hours Per Unit

Blinks                      991                                    5                                      8

Dinks                       2,043                                  2                                      9

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $88,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $82,300.

Problem 1: Ramapo Company uses a single plantwide overhead rate to apply all factory overhead costs based on direct labor hours. The factory overhead allocated per unit of Blinks is

a. $8.74

b. $94.20

c. $411.55

d. $37.67