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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. However,

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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. However, management is considering moving to a multiple department rate system for allocating overhead. Total Direct DLH per Product Labor Hours Overhead Painting Dept. $250,000 10,000 16 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. 20 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. $25.00 per dlh $0.07 per dlh $14.77 per dlh $6.25 per dlh

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