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 16 dlh 4 dlh Painting Dept. $248,000 10,000 dlh Finishing Dept. 72,000 10,000 20,000 dlh 20 dlh 20 dlh Totals $320,000 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 $49.60 per unit $99.20 per unit $28.80 per unit S64.00 per unit
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