Determine the overhead from both production departments

Reference no: EM13482768

1 - 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.

	Overhead	Direct LaborHours (dlh)	Product
	Overhead	Direct LaborHours (dlh)	A	B
Painting Dept.	$248,000	10,000 dlh	16 dlh	4 dlh
Finishing Dept.	72,000	10,000	4	16
Totals	$320,000	20,000 dlh	20 dlh	20 dlh
	========	==========	======	======

Determine the overhead from both production departments allocated to each unit of Product A if the company uses a multiple department rate system.

A - $396.80 per unit

B - $425.60 per unit

C - $320.00 per unit

D - $214.40 per unit

Reference no: EM13482768

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