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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.
Overhead | Total Direct Labor Hours | DLH per Product | ||||
A | B | |||||
Painting Dept. | $244,500 | 9,300 | 3 | 5 | ||
Finishing Dept. | 84,300 | 11,200 | 6 | 7 | ||
Totals | $328,800 | 20,500 | 9 | 12 |
The single plantwide factory overhead rate for Adirondack Marketing Inc. is
a.$2.33 per dlh
b.$16.04 per dlh
c.$26.29 per dlh
d.$7.53 per dlh
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