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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
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
Overhead Labor Hours dlh Product A Product B
tablePainting Dept.,$
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