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 (dlh) A B Painting Dept. $243,300 11,500 dlh 14 dlh 7 dlh Finishing Dept. 71,600 6,600 3 18 Totals $314,900 18,100 dlh 17 dlh 25 dlh 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 Oa. S148.12 per unit Ob. $21.16 per unit Oc. S75.94 per unit Od. S121.78 per unit

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.
Direct
Product
Overhead
Labor Hours (dlh)
A
B
Painting Dept.
$243,300
11,500 dlh
14 dlh
7 dlh
Finishing Dept.
71,600
6,600
18
Totals
$314,900
18,100 dlh
17 dlh
25 dlh
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
Oa. S148.12 per unit
Ob. S21.16 per unit
Oc. S75.94 per unit
Od. $121.78 per unit
Transcribed Image Text: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 (dlh) A B Painting Dept. $243,300 11,500 dlh 14 dlh 7 dlh Finishing Dept. 71,600 6,600 18 Totals $314,900 18,100 dlh 17 dlh 25 dlh 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 Oa. S148.12 per unit Ob. S21.16 per unit Oc. S75.94 per unit Od. $121.78 per unit
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