Question
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to produc
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to produc However, management is considering moving to a multiple department rate system for allocating overhead. Total Direct DLH per Product Painting Dept. Overhead $240,500 Labor Hours A B 11,500 9 12 Finishing Dept. 83,100 10,900 3 7 Totals $323,600 22,400 12 19 Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc. Oa. $130.05 per unit Ob. 518822 per unit Oc. $14.45 per unit Od. 5648.30 per unit
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