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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 Direct Overhead Labor Hours (dih) a. $25.02 per unit b. $101.83 per unit c. $125.10 per unit d. $61.39 per unit 10,600 dlh 6,100 16,700 dlh Product A 12 dlh $265,200 74,900 $340,100 The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is 5 Product B 17 dlh 5 dlh 19 24 dlh
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