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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.
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 Direct DLH per Product Overhead Labor Hours A B Painting Dept. Finishing Dept. $257,000 10,100 7 6. 89,000 10,100 5 3 Totals $346,000 20,200 12 9 Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc. Oa. $17.13 per unit Ob. $178.12 per unit Oc. $534.36 per unit Od. $119.91 per unit
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