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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.

Overhead Direct Labor Hours (dlh) Product
A B
Painting Dept. $442,028 11,800 dlh 16 dlh 4 dlh
Finishing Dept. 61,103 4,300 5 16
Totals $503,131 16,100 dlh 21 dlh 20 dlh

The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

a.$14.21 per unit

b.$670.41 per unit

c.$37.46 per unit

d.$377.20 per unit

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