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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.
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 Direct Painting Dept. Finishing Dept. Overhead $250,000 75,000 Labor Hours DLH per Product A DLH per Product B 10,000 16 4 Totals $325,000 12,000 22,000 4 16 20 20 The single plantwide factory overhead rate (rounded to the nearest cent) for Adirondack Marketing Inc. is a. $6.25 per dlh b. $14.77 per dlh c. $0.07 per dlh Od. $25.00 per dlh
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