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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) A Painting Dept. $411,471 13,100 dih 14 dih 7 din Finishing Dept. 77,327 5,300 7 17 Totals $488,798 18,400 dih 21 dlh 24 dih The overhead from both production departments allocated to each unit of Product B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a. $14.59 per unit b. $467.90 per unit c. $31.41 per unit d. $541.87 per unit Seu Sinprogress 11

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