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. $250,000 10,000 16 4

Finishing Dept. 72,000 12,000 4 16

Totals $322,000 22,000 20 20

Calculate the overhead rate per unit for Product A:

a. $ 146.40 per unit

b. $ $161.00 per unit

c. $292.80 per unit

d. $322.00 per unit

Calculate the plantwide factory overhead rate:

a $8.05 per dlh

b. 25.00 per dlh

c. $14.64 per dlh

d. $32.20 per dlh