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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. Product Direct Labor Hours () Overhead A B $242,500 9,900 14 5 Painting Dept. Finishing Dept. 70,8008,800317 Totals $313,300 18,700 dih17 22 dlh 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 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. Product Direct Labor Hours (dih) Overhead B $242,500 9,900 dih 14 dlh 5 dlh Painting Dept. Finishing Dept. 70,800 8,800 3 17 Totals $313,300 18,700 dih 17 dih 22 dih 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 Oa. $24.49 per unit Ob. S122.45 per unit Oc. 583.77 per unit Od. $40.23 per unit
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