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

 

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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. Painting Dept. Overhead $248,000 Direct Labor Hours (dih) Product A Product B 10,000 dih 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dih 20 dih 20 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is 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. Overhead $248,000 Direct Labor Hours (dih) Product A Product B 10,000 dih 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dih 20 dih 20 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is

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