16.

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.

	Overhead		Direct Labor Hours (dlh)			Product
						A		B
Painting Dept.	$467,874		13,900	dlh		15	dlh	5	dlh
Finishing Dept.	78,825		7,500			6		15
Totals	$546,699		21,400	dlh		21	dlh	20	dlh

Determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.

a. $567.96 per unit

b. $33.66 per unit

c. $325.95 per unit

d. $10.51 per unit