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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.

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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. 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) B Painting Dept. $245,400 10,700 din 15 dih 2 din Finishing Dept. 71,600 6,900 15 $317.000 17,600 din 19 dih 17 din The actory overhead allocated per unit of Product in the Painting Department of Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is 4 Totals a 45. b. 522 330.75 per d. Spot

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