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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. Direct Product Overhead Labor Hours (dlh) A B Painting Dept. $254,700 11,300 dih 13 dlh 3 dlh Finishing Dept. 75,000 6,300 3 15 Totals $329,700 17,600 dlh 16 dlh 18 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. Oa. $35.71 per unit Ob. $67.62 per unit Oc. $56.20 per unit Od. $22.54 per unit
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