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. Overhead Direct Labor Hours (dlh) Product A B Painting Dept. $225,100 11,900 dlh 12 dlh 7 dlh Finishing Dept. 79,300 8,400 2 20 Totals $304,400 20,300 dlh 14 dlh 27 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
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