Blue Ridge Marketing Inc

question 13

Multiple Choice

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.​ ​
-The overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

• A)$396.80 per unit
• B)$425.60 per unit
• C)$320.00 per unit
• D)$214.40 per unit