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. | $255,100 | 11,300 | 3 | 6 | ||
| Finishing Dept. | 83,500 | 10,600 | 5 | 3 | ||
| Totals | $338,600 | 21,900 | 8 | 9 |
Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc.
a. $46.38 per unit
b. $383.78 per unit
c. $67.73 per unit
d. $15.46 per unit
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Horngrens Financial & Managerial Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
0133255573, 978-0133255577
