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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.
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 mull ple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Painting Dept Overhead $248,000; Painting Dept Direct Labor Hours (din) 10.000 ding Painting Dept Product A 16 dih; Painting Dept Proudct B 4dlh. Finishing Dept. @verhead $72,000; Finishing Dept. Direct Labor Hours (dih) 10,000; Finishing Dept. Product A 4 dih; Finishing Dept. Product B 20 dih. Determine the overhead in the Finishing Department for each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system
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