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.

OverheadDirect Labor

Hours (dlh)ProductABPainting Dept.$248,00010,000 dlh16 dlh4 dlhFinishing Dept.72,00010,000416Totals$320,00020,000 dlh20 dlh20 dlh

Determine the overhead in the Finishing Department for each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system.

a.$99.20 per unit

b.$28.80 per unit

c.$64.00 per unit

d.$49.60 per unit