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36 Adirondak 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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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. DLH per Product Direct Total Overhead A B Labor Hours 9 9 Painting Dept. Finishing Dept $247,000 82,800 $329,800 12,000 10,000 5 8 Totals 22,000 14 17 Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc. a. 5185 25 per unit b. 5638.0% per unit c. 514.99 per unit d. $134 91 per unit Step by Step Solution
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