Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single...
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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. 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. Direct Labor Product Hours (dlh) Overhead A B 16 dlh 4 dlh Painting Dept. $248,000 10,000 dlh 16 Finishing Dept. 72.000 10.000 20,000 dlh 20 dlh 20 dlh Totalls $320,000 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 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. Direct Labor Product Hours (dlh) Overhead A B 16 dlh 4 dlh Painting Dept. $248,000 10,000 dlh 16 Finishing Dept. 72.000 10.000 20,000 dlh 20 dlh 20 dlh Totalls $320,000 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
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