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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. Product Direct Labor Hours (dih) Overhead A 8 Painting Dept. 7 dih 10 din $255,200 62,600 $317,800 9,300 dih 10,200 19,500 dih Finishing Dept Totals 2 7 9 dih 17 dih Using a single plantwide rate, the factory overhead allocated per unit of Product B is a. $277.10 b. $146.70 Oc. $16.30 d. 192.09 Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to product 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 Overhead Direct Labor Hours (dih) A B 4 16 Painting Dept. $248,000 10,000 din 16 din 4 dih Finishing Dept 72,000 10,000 Totals $320,000 20,000 din 20 dih 20 dih The factory overhead allocated per unit of Product in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is a. 549. perut b. 599.20 per unit c. 523 o per d. 564.00 per unit

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