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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 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 Product Overhead Labor Hours (dih) A B Painting Dept. Finishing Dept. Totals $397,518 11,400 dih 15 dih 5 dih 58,920 $456,438 4,000 15,400 dih 4 16 19 dlh 21 dih 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. Ca. $581.97 per unit Ob. $34.87 per unit Oc. $14.73 per unit Od. $410.05 per unit
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