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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. Painting Dept. Finishing Dept. Totals Overhead $407,040 100,776 $507,816 Direct Labor Hours (dih) 12,800 dlh 7,800 20,600 dlh Product 6 A 15 dlh B 21 dlh 3 dlh 15 The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is O a. $12.92 per unit O b. $289.20 per unit O c. $31.80 per unit O d. $554.52 per unit 18 dlh
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