Question
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.
| Overhead | Total Direct Labor Hours | DLH per Product | ||||
| A | B | |||||
| Painting Dept. | $259,800 | 9,000 | 7 | 5 | ||
| Finishing Dept. | 87,200 | 10,100 | 5 | 9 | ||
| Totals | $347,000 | 19,100 | 12 | 14 | ||
Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.
a.$8.63 per dlh
b.$2.17 per dlh
c.$28.87 per dlh
d.$18.17 per dlh
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
