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