Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a...
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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 (dlh) Overhead A Painting Dept. $260,100 10,800 dlh 13 dlh 5 dlh Finishing Dept. 79,200 9,400 15 Totals $339,300 20,200 dih 15 dlh 20 dih The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa. $120.40 per unit Ob. $83.99 per unit Oc. $24.08 per unit Od. $42.13 per unit
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