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12 Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to
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Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Product Direct Labor Hours (dlh) Overhead A B 10,800 dlh 13 dlh 7 dlh Painting Dept. Finishing Dept. $412,236 104,960 8,000 6 15 Totals $517,196 18,800 dlh 19 dlh 22 dlh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa. $38.17 per unit Ob. $463.99 per unit Oc. $13.12 per unit Od. $574.93 per unitStep by Step Solution
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