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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
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to product 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. $257,200 10,600 dihi 5 dih 9 dih Finishing Dept. Totals 65,300 $322,500 11,500 2 8 22,100 dih 7 dih 17 dih Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $121.32 O $248.03 $14.59 O$102.13
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