Question
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. $258,500 9,500 8 11 Finishing Dept. 84,600 10,200 2 9 Totals $343,100 19,700 10 20 Using a single plantwide rate, the factory overhead allocated per unit of Product A in the Painting Department is a.$217.68 per unit b.$816.32 per unit c.$139.36 per unit d.$17.42 per unit
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