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 $434,824 14,800 dlh 14 dlh 7 dlh Finishing Dept 96,064 7,600 2 16 Totals $530,888 22,400 dlh 16 dlh 23 dlh Determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc uses a multiple department rate system a $436 60 per unit b $29 38 per unit c $407 90 per unit d $12 64 per unit

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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
	Overhead	Direct Labor Hours (dlh)		A		B
Painting Dept.	$434,824	14,800	dlh	14	dlh	7	dlh
Finishing Dept.	96,064	7,600		2		16
Totals	$530,888	22,400	dlh	16	dlh	23	dlh

Determine the overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.

a. $436.60 per unit

b. $29.38 per unit

c. $407.90 per unit

d. $12.64 per unit