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.

OverheadDirect Labor Hours (dlh)Product

A B

Painting Dept.$246,900 9,300dlh 5dlh8dlh

Finishing Dept.68,300 11,100 5 8

Totals$315,200 20,400dlh 10dlh16dlh

Using a single plantwide rate, the factory overhead allocated per unit of Product B is

a.$247.20

b.$154.50

c.$132.74

d.$15.45