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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 multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours Product Direct Labor Hours (all) Overhead B 16 alh 4 dlh Painting Dept. $248,000 10,000 dih 16 Finishing Dept. 72.000 10.000 20 dlh 20 dih Totals $320,000 20.000 dth Determine the overhead in the Finishing Department for each unit of Product Aif Blue Ridge Marketing Inc. uses a multiple department rate system O $28.80 per unit O $64.00 per unit O $49.60 per unit O $99.20 per unit
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