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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 $245,100 Labor Hours A B 10,500 6 12 Finishing Dept. 77,300 10,800 4 7 Totals $322,400 21,300 10 19 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $2.90 per dih Ob. $15.14 per dlh Oc. $7.16 per dih Od. $23.34 per dih
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