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#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.
#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.
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