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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. $241,200 9,600 2 6 Finishing Dept. 62,800 10,100 3 4 Totals $304,000 19,700 5 10 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. a. $3.00 per dlh b. $15.43 per dlh c. $25.13 per dlh Od. $6.22 per dlh
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