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.	$225,214		8,452	dlh	12	dlh	4	dlh
Finishing Dept.	71,396		7,149		5		20
Totals	$296,610		15,601	dlh	17	dlh	24	dlh

Determine the overhead rate in the Painting Department for each unit of Product B if the company uses a multiple department rate system. Round the final answer to the nearest cent.

Select the correct answer.

a. $26.65 per dlh

b.

$76.05 per dlh

c.

$39.95 per dlh

d.	$106.58 per dlh