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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,
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. Overhead Total Direct Labor Hours DLH per Product A B Painting Dept. $250,000 10,000 16 4 Finishing Dept. 72,000 12,000 4 16 Totals $322,000 22,000 20 20 ======== ====== == == Calculate the plantwide factory overhead rate: a) $25.00 dlh b) $32.20 dlh c) $14.64 dlh d) $8.05 dlh
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