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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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