The Ramapo Company Produces Two Products, Blinks and Dinks

question 58

Multiple Choice

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. 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 based on labor hours. What is the overhead cost per unit for Blinks?

• A) $78.00
• B) $19.50
• C) $37.45
• D) $56.00

Know the terms and effects of specific venture investment rounds (e.g., cram-down round).

Understand the valuation techniques applicable to companies with negative cash flows but potential for significant earnings.

Analyze the factors and characteristics that lead to successful venture capital deals.

Understand different financing strategies for companies including last resort options.

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Definitions:

Direct Materials

These are the raw materials that are directly incorporated into a finished product.

Standard Cost Card

A document that lists the standard costs associated with producing a single unit of a product, including materials, labor, and overhead.

Fixed Manufacturing Overhead

Expenses related to production that remain constant regardless of output quantity, including lease payments, employee wages, and insurance premiums.

Direct Labor Costs

These are the wages paid to workers who are directly involved in manufacturing or producing a product.