4. MC.18.56.ALGO

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.	$239,100		10,100	dlh		13	dlh	3	dlh
Finishing Dept.	79,100		6,200			5		15
Totals	$318,200		16,300	dlh		18	dlh	18	dlh

The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

a.$23.67 per unit

b.$71.01 per unit

c.$38.27 per unit

d.$58.56 per unit