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.	$253,600		10,400		5	7
Finishing Dept.	65,000		11,600		5	5
Totals	$318,600		22,000		10	12

Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.

a.$2.20 per dlh

b.$14.48 per dlh

c.$5.60 per dlh

d.$24.38 per dlh