Business, 22.01.2021 09:30 lizdeleon248

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 (dih)
Overhead
A
B
Painting Dept.
$248,000
10,000 dih
16 dih
4 dlh
Finishing Dept.
72,000
10,000
4
16
Totals
$320,000
20,000 dih
20 dih
20 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. $49.60 per unit
b. $28.80 per unit
c. $64.00 per unit
d. $99.20 per unit

Answers: 2

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

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