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2 Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products.
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Adirondack 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. Total DLH per Product Direct Labor Hours Overhead A B Painting Dept. $244,900 11,000 7 8 Finishing Dept. 84,200 12,000 5 5 Totals $329,100 23,000 12 13 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $22.26 per dlh Ob. $2.08 per dlh Oc. $14.31 per dih Od. $7.02 per dlhStep by Step Solution
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