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 (dih) A Painting Dept. $239,100 73,900 $313,000 10,900 dlh 7,300 18,200 dlh 12 dlh 4 dih 15 19 dlh Finishing Dept. 2 Totals 14 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. a. $68.79 per unit b. $87.76 per unit Oc. $21.94 per unit d. $40.49 per unit S3 $2 539 xp Previous Next