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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. | $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
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