Reference no: EM132691796

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               1137                                         2                                       5
Dinks                     1868                                    5                                       7

• All of the machine hours take place in the Fabrication department, which has an estimated overhead of $119,700. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $86,900.

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 Dinks is

a.$173.82
b.$71.16
c.$24.43
d.$88.95