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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 B 14 din 6 din Painting Dept. Finishing Dept. Totals $393,720 62,146 $455,866 13,600 din 4,600 18,200 din 7 20 21 din 26 dih Determine the overhead from both production departments allocated to each unit of Product A ir Blue Ridge Marketing Inc. uses a multiple department rate system. a. $28.95 per unit b. $443.90 per unit CC. $499.87 per unit d. $13.51 per unit

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