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 DirectLabor Hours (dlh) Product  A   B  Painting Dept. $250,600   11,900 dlh   5 dlh 10 dlh Finishing Dept. 87,700   10,300     2   7       Totals $338,300   22,200 dlh   7 dlh 17 dlh Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $15.24 $259.08 $105.29 $106.68

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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.


 
Overhead
Direct
Labor Hours (dlh)
Product
 A   B 
Painting Dept. $250,600   11,900 dlh   5 dlh 10 dlh
Finishing Dept. 87,700   10,300     2   7  
    Totals $338,300   22,200 dlh   7 dlh 17 dlh

Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B.

$15.24
$259.08
$105.29
$106.68
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