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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 $250,800 Total DLH per Product Direct Labor Hours 10,4009 7 Painting Dept. Finishing Dept. 68,700 $319,500 10,500 20,900 Totals 14 Using a single plantwide rate, the factory overhead allocated per unit of Product A in the Painting Department is Oa. $137.61 per unit Ob. $217.04 per unit Oc. $602.88 per unit Od. $15.29 per unit
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