1. 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.

   	Overhead	Direct Labor Hours (dlh)	Product
   			A	B
   Painting Dept.	$248,000	10,000 dlh	16 dlh	4 dlh
   Finishing Dept.	72,000	10,000	4	16
   Totals	$320,000	20,000 dlh	20 dlh	20 dlh

   Determine the overhead in the Finishing Department for each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system.

   a. $64.00 per unit

   b. $28.80 per unit

   c. $49.60 per unit

   d. $99.20 per unit