#23

Adirondak 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. From the following information, calculate the overhead rate per unit for Product A in painting department. Round to the nearest cent in the final calculation.

	Overhead		Total Direct Labor Hours		DLH per Product
					A	B
Painting Dept.	$242,126		10,858		4	8
Finishing Dept.	60,186		11,066		3	6
Totals	$302,312		21,924		7	14

Select the correct answer.

$89.20 per dlh

$468.29 per dlh

$96.52 per dlh

$13.79 per dlh