Adirondack Marketing Inc. 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. $246,200 9,800 2 5 Finishing Dept. 88,800 10,800 2 6 Totals $335,000 20,600 4 11 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a.$25.12 per dlh b.$3.75 per dlh c.$16.26 per dlh d.$8.22 per dlh
Adirondack Marketing Inc. 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. $246,200 9,800 2 5 Finishing Dept. 88,800 10,800 2 6 Totals $335,000 20,600 4 11 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a.$25.12 per dlh b.$3.75 per dlh c.$16.26 per dlh d.$8.22 per dlh
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 1PA: Gwinnett County Chrome Company manufactures three chrome-plated productsautomobile bumpers, valve...
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Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory
Overhead |
Total Direct Labor Hours |
DLH per Product | ||||
A | B | |||||
Painting Dept. | $246,200 | 9,800 | 2 | 5 | ||
Finishing Dept. | 88,800 | 10,800 | 2 | 6 | ||
Totals | $335,000 | 20,600 | 4 | 11 |
The single plantwide factory overhead rate for Adirondack Marketing Inc. is
a.$25.12 per dlh
b.$3.75 per dlh
c.$16.26 per dlh
d.$8.22 per dlh
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