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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. Painting Dept. Finishing Dept. Totals Overhead a. $46.20 per unit O b. $33.61 per unit O c. $16.79 per unit d. $23.10 per unit $265,600 72,200 $337,800 Direct Labor Hours (dlh) 11,500 dlh 8,600 20,100 dlh Product 13 dlh 2 15 dlh B 2 dlh 15 17 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.

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. Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system. a. $46.20 per unit b. $33.61 per unit c. $16.79 per unit d. $23.10 per unit

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