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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 B Painting Dept. $245,600 9,700 2 6 Finishing Dept. 70,300 10,300 3 3 Totals $315,900 20,000 5 9 Using a single plantwide rate, the factory overhead allocated per unit of Product A in the Painting Department is a $15.80 per unit b. $31.60 per unit C. $354.47 per unit d. $50.64 per unit
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