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Keystone manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is

Keystone 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

The single plantwide factory overhead rate for Adirondack Marketing Inc. is

a.

$0.07 per dlh

b.

$14.77 per dlh

c.

$25.00 per dlh

d.

$ 6.25 per dlh

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