Blue Ridge Marketing Inc

question 54

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 B if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is

• A)$425.60 per unit
• B)$115.20 per unit
• C)$214.40 per unit
• D)$320.00 per unit

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