oWv2 0 Blue Ridge Marketing Inc. manufactures two products, A and B. Presently,

Question

oWv2 0 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 allcatsng following table presents information about estimated overhead and direct labor hours. Direct Labor Hours (dlh) 11,900 dih Overhead $240,900 82,600 $323,500 Painting Dept. Finishing Dept. 6 dih 11 dlh 11,100 23,000 dlh 8 dih 19 dlh Totals Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $121.46 O$267.33 $112.56 o$14.07

Explanation / Answer

single plantwide rate = 323500 / 23000 = 13.76

Overhead in B = DLH * RATE

= 19*13.76

= 261.44

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