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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. Direct Labor Products Overhead Hours (dlh) A $248,000 10,000 dlh 4 dlh Painting Department 16 dlh 4 dlh 72,000 10,000 dlh 16 dlh Finishing Department Totals $320,000 20,000 dlh 20 dlh 20 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge's Product B Using the data from Question 19 above, determine the overhead in the Finishing Department for each unit of Product A if Blue Ridge uses a multiple department rate system. O$99.20 $49.60 $64.00 $28.80 OOOO Using the data from Question 19 above, determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge uses a multiple department rate system. $396.80 $214.40 $320.00 $425.60 Using the data from Question 19 above, determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge uses a multiple department rate system. $214.40 $320.00 $115.20 $425.60
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