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. $514,836   12,600 dlh   13 dlh 4 dlh Finishing Dept. 64,719   8,100     4   18       Totals $579,555   20,700 dlh   17 dlh 22 dlh Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system. a.$40.86 per unit b.$307.26 per unit c.$563.14 per unit d.$7.99 per unit

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.