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.

1. Determine the overhead rate in the Finishing Department for each unit of Product A if the company uses a multiple department rate system. a. $7.20 per dlh b. $12.40 per dlh c. $16.00 per dlh d. $24.80 per dlh

2. Determine the overhead from both production departments allocated to each unit of Product A if the company uses a multiple department rate system. a. $320.00 per unit b. $214.40 per unit c. $396.80 per unit d. $425.60 per unit

Painting Dept. Finishing Dept. Totals $248,000 $320,000 Direct Labor Hours dlh 10,000 dlh 10,000 20,000 dh Product 16 dlh 4 dlh 20 dlh 20 dlh