Question
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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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
978-1119502425
