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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. However,
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 DLH per Product Direct Overhead Labor Hours Painting Dept. $251,900 11,600 Finishing Dept. 73,100 11,700 5 Totals $325,000 23,300 B 2 5 7 7 12 Using a single plantwide rate, the factory overhead allocated per unit of Product A in the Painting Department is Oa. $13.95 per unit Ob. $412.59 per unit Oc. $43.43 per unit Od. $27.90 per unit
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