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 (dih) Product A B Painting Dept. $254,100 9,300 dlh 2 dlh 11 dlh Finishing Dept. 69,000 10,900 4 6 Totals $323,100 20,200 dlh 6 dlh 17 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is a. $272.00 Ob. $96.00 c. $54.65 d. $16.00 Previous Next