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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,
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. DLH per Product Total Direct Labor Hours A Overhead B $256,900 3 11 Painting Dept. Finishing Dept. 12,000 11,800 89,400 4 9 Totals $346,300 23,800 7 20 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. Oa. $3.86 per dlh Ob. $7.58 per dlh Oc. $14.55 per dlh Od. $21.41 per dlh Shanghai Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $6 per pound. A box of glasses weighs 2 lbs, the box of china weighs 4 lbs, and a box of everyday dinnerware weighs 6 lbs. Round answers to nearest whole dollar. a Determine the shipping and handling activity for each product. Glasses China Everyday dinnerware b Determine the total shipping and receiving costs for the china if 2,300 boxes are shipped
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