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 (dlh)	Product
A	B
Painting Dept.	$248,000	10,000 dlh	16 dlh	4 dlh
Finishing Dept.	72,000	10,000	4	16
Totals	$320,000	20,000dlh	20dlh	20dlh

Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.

$496.00

$144.00

$640.00

$320.00