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.
|Painting Dept.|| |
|16 dlh||4 dlh|
|Finishing Dept.|| |
|20 dlh||20 dlh|
Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system.
|a.||$320.00 per unit|
|b.||$214.40 per unit|
|c.||$425.60 per unit|
|d.||$396.80 per unit|
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