The ramapo company produces two products blinks and dinks

Reference no: EM13609529

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.

Products # of units labor hrs per unit Mach hrs. per unit

Blinks 1000 4 5

Dinks 2000 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. What would the single plantwide rate be if it was based on machine hours instead of labor hours?

Reference no: EM13609529

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