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.	$402,030		13,500	dlh		15	dlh	6	dlh
Finishing Dept.	88,752		8,600			4		20
Totals	$490,782		22,100	dlh		19	dlh	26	dlh

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

a.$487.98 per unit

b.$10.32 per unit

c.$29.78 per unit

d.$385.08 per unit

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single planbide 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. Product Overhead B 15 dih Direct Labor Hours (dih) 13,500 din 8,600 22,100 dih Painting Dept. Finishing Dept. Totals 5 din $402,030 88,752 $490,782 20 19 dih 26 dih Determine the overhead from both production departments allocated to each unit of Product Af Blue Ridge Marketing Inc uses a multiple department rate system. 6. 310.12 per 1997 350