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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. Total DLH per Product Direct Overhead Labor Hours A B Painting Dept. $242,100 11,000 6 9 Finishing Dept. 83,300 10,700 5 5 Totals $325,400 21,700 11 14 Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc. Oa. $15.00 per unit Ob. $550.23 per unit c. $132.05 per unit Od. $90.00 per unit
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