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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.

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. $443,750 14,200 dlh 15 dlh 6 dlh
Finishing Dept. 47,568 4,800 7 19
Totals $491,318 19,000 dlh 22 dlh 25 dlh

The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

a.$375.79 per unit

b.$538.12 per unit

c.$31.25 per unit

d.$9.91 per unit

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