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
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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
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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 products. However, management is considering moving to a multiple department rate system for allocating overhead.

 

Overhead
Total
Direct
Labor Hours
DLH per Product
   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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