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.	$248,400		12,000		3	10
Finishing Dept.	78,800		11,200		2	7
Totals	$327,200		23,200		5	17

Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.

a.$7.04 per dlh

b.$14.10 per dlh

c.$4.40 per dlh

d.$20.70 per dlh