Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to product However, management is considering moving to a multiple department rate system for allocating overhead. Painting Dept. Finishing Dept. Totals Overhead $248,300 73,300 $321,600 Total Direct Labor Hours 10,200 10,000 20,200 DLH per Product A 3 4 7 DLH per Product B 9 3 12 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a. $2.71 per dlh Ob. $7.33 per dlh Oc. $24.34 per dlh Od. $15.92 per dlh

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to product
However, management is considering moving to a multiple department rate system for allocating overhead.
Painting Dept.
Finishing Dept.
Totals
Overhead
$248,300
73,300
$321,600
Total
Direct
Labor Hours
10,200
10,000
20,200
DLH per
Product A
3
4
7
DLH per
Product B
9
3
12
The single plantwide factory overhead rate for Adirondack Marketing Inc. is
a. $2.71 per dlh
Ob. $7.33 per dlh
c. $24.34 per dlh
Od. $15.92 per dlh
Transcribed Image Text:Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to product However, management is considering moving to a multiple department rate system for allocating overhead. Painting Dept. Finishing Dept. Totals Overhead $248,300 73,300 $321,600 Total Direct Labor Hours 10,200 10,000 20,200 DLH per Product A 3 4 7 DLH per Product B 9 3 12 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a. $2.71 per dlh Ob. $7.33 per dlh c. $24.34 per dlh Od. $15.92 per dlh
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