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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. Painting Dept. Finishing Dept. Direct Overhead Labor Hours (dlh) Totals $250,800 74,500 $325,300 The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is O a. $97.98 per unit O b. $145.80 per unit O c. $46.56 per unit O d. $29.16 per unit Product A Product B 14 dlh 8,600 dlh 8,000 16,600 dlh 2 16 dlh 5 dlh 18 23 dlh 4 12
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