Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide...
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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, management is considering moving to a multiple department rate system for allocating overhead. Total Direct DLH per Product A Overhead B Labor Hours Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Ca. $14.77 per dlh Ob. $6.25 per dlh Oc. $25.00 per dlh d. $0.07 per dlh 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 Overhead B Labor Hours Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Ca. $14.77 per dlh Ob. $6.25 per dlh Oc. $25.00 per dlh d. $0.07 per dlh
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