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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.

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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. 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) AB Painting Dept. $259,500 10,800 dih 2 dih 8 dih Finishing Dept. 78,600 10,800 3 9 Totals $338,100 21,600 din 5 dlh 17 dih Using a single plantwide rate, the factory overhead allocated per unit of Product B is a. $78.25 b. $15.65 C. $266.05 O O d. $48.06

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