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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 DLH per Product Painting Dept. Overhead $258,600 Labor Hours ^ B 9,800 3 11 Finishing Dept. 80,100 10,700 2 4 Totals $338,700 20,500 5 15 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $4.00 per dih Ob. $1652 per dih Oc. $7.49 per dih Od. $26.39 per dih
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