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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 A B Overhead Labor Hours Painting Dept. Finishing Dept. $245,100 11,400 5 5 83,600 11,300 4 3 Totals $328,700 22,700 9 8 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a. $21.50 per dlh Ob. $1.89 per dlh c. $7.40 per dlh Od. $14.48 per dlh Previous Next
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