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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 product
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to product 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. $251,700 9,100 5 9 Finishing Dept. 77,400 11,700 6 8 Totals $329,100 20,800 11 17 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. Oa. $27.66 per dih Ob. $6.62 per dh Oc. $15.82 per dih Od. $2.55 per dh
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