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.	$252,600		9,800		6	7
Finishing Dept.	62,700		11,200		6	6
Totals	$315,300		21,000		12	13

Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.

a.$15.01 per dlh

b.$5.60 per dlh

c.$25.78 per dlh

d.$2.08 per dlh