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Adirondak 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. DLH per Product Total Direct Labor Hours Overhead $247,100 Painting Dept. Finishing Dept. 84,700 10,600 10,900 21,500 Totals $331,800 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. a. $7.77 per dih b. $15.43 per dih c. $23.31 per dih d. $2.50 per dit Adirondak 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. DLH per Product Total Direct Labor Hours Overhead $245,300 10,200 Painting Dept. Finishing Dept. 72,500 10,900 Totals $317,800 21,100 Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc. a. $96.20 per unit b. $60.24 per unit $577.18 per unit d. $15.06 per unit ES Blue Ridge 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. The following table presents information about estimated overhead and direct labor hours. Direct Labor Hours (dlh) Product B Overhead A $242,000 12,000 dlh Painting Dept. Finishing Dept. 74,900 10,700 22,700 dlh 5 dlh 4 9 dlh 9 dlh 8 17 dlh Totals $316,900 Using a single plantwide rate, determine the overhead rate per unit for Blue Ridge Marketing Inc.'s Product B. $237.32 $125.64 $100.83 $13.96 3.96 ACTIVE COSE Procurement Scheduling Materials handling Product development Production $326,700 $204,600 $495,600 $763,500 $1,441,900 Activity Base Number of purchase orders Number of production orders Number of moves Number of engineering changes Machine hours Number Number of Engineering Changes Machine Hours Units 2.500 1.800 4,400 8.100 10.600 2 800 Number of Number of Number Purchase Production Orders Orders Moves Disk drives 4,070 450 1.420 Tape drives 1,700 205 610 Wire drives 11,600 700 4.500 Determine the activity rate for procurement per purchase order. a $151.00 b. 568.01 c. $241.11 d. 18.81 Activity Cost Activity Base $363,200 Number of purchase orders Number of production orders $208,000 Procurement Scheduling Materials handling Product development Production $477,900 Number of moves Number of engineering changes $715,400 $1,418,000 Machine hours Number of of Number of Engineering Changes 15 5 Machine Hours 2,300 10,000 10,000 10,600 3,600 2,500 4,100 Number of Number of Number Purchase Production Orders Orders Moves Disk drives 3,870 380 1,500 Tape drives 1,800 215 510 Wire drives 12,500 850 Determine the activity-based cost for each tape drive unit. a. $427.57 b. $19.99 c. $692.77 d. $224.78
