Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory ove

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Blue Ridge Marketing Inc Manufactures Two Products A And B Presently The Company Uses A Single Plantwide Factory Ove 1 (18.69 KiB) Viewed 46 times

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 Direct Product Overhead Labor Hours (dth) A B Painting Dept. $419,760 14,400 16 dlh 6 dih Finishing Dept 125,802 8,700 15 4 20 dih Totals $545,562 23,100 dh 21 dh The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa 51446 perunit Ob. 5524.24 per unit Oc. $39180 per unit Od. $2915 per unit