Answer Happy

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 (dih) A B Painting Dept. $231,500 12 dih 2 dlh 10,400 dih 9,200 4 19 Finishing Dept. Totals 79,500 $311,000 19,600 dlh 16 dih 21 dih 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 a. 544.52 per unit b. $17.28 per unit c. $22.26 per unit d. $31.73 per unit