5. 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.

	Overhead		Total Direct Labor Hours		DLH per Product
					A	B
Painting Dept.	$242,100		9,300		2	11
Finishing Dept.	63,900		11,500		4	4
Totals	$306,000		20,800		6	15

Using a single plantwide rate, the factory overhead allocated per unit of Product A in the Painting Department is

a.$14.71 per unit

b.$29.42 per unit

c.$52.06 per unit

d.$546.68 per unit

6. 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.

	Overhead		Total Direct Labor Hours		DLH per Product
					A	B
Painting Dept.	$250,900		11,200		3	11
Finishing Dept.	69,800		10,300		6	9
Totals	$320,700		21,500		9	20

The single plantwide factory overhead rate for Adirondack Marketing Inc. is

a.$3.22 per dlh

b.$14.92 per dlh

c.$6.78 per dlh

d.$22.40 per dlh