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. $244,100 9,000 6 7

Finishing Dept. 77,900 11,400 2 5

Totals $322,000 20,400 8 12

Calculate the overhead rate per unit for Product A in the Painting Department of Adirondack Marketing Inc.

a. $15.78 per unit

b. $542.44 per unit

c. $162.73 per unit

d. $94.68 per unit