Adirondack 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.	$250,000		10,000		16	4
Finishing Dept.	75,000		12,000		4	16
Totals	$325,000		22,000		20	20

Calculate the plantwide factory overhead rate:

a. $2.33 per dlh

b. $16.04 per dlh

c. $26.29 per dlh

d. $7.53 per dlh