11 Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company...
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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 B Painting Dept. $250,200 9,900 dlh 5 dlh 8 dlh Finishing Dept. 75,200 11,800 5 7 Totals $325,400 21,700 dlh 10 dlh 15 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.00 Ob. $150.00 Oc. $126.36 O d. $225.00
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