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A 5 Blue Ridge Marketing Inc manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead
A 5 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. Direct Product Overhead Labor Hours (din) Painting Dent $248,000 10,000 h 16 dih 4 dih Finishing Dept 72,000 10,000 Totals $320,000 20,000 din 20 din The overhead from both production departments allocated to each unit of Produce Bir Blue Ridge Marketing Inc. uses the multiple production department factory overhead 4 16 20 dth rate method is 10 porn b. 1714 Dc per d. 5115.30
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