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. OverheadTotalDirectLabor HoursDLH per Product A B Painting Dept.$246,200 9,800 25Finishing Dept.88,800 10,800 26 Totals$335,000 20,600 411The single plantwide factory overhead rate for Adirondack Marketing Inc. isa.$25.12 per dlhb.$3.75 per dlhc.$16.26 per dlhd.$8.22 per dlh

Factory overhead rate is the per hour or per unit rate which is to be multiplied with the number of…

Answered: Adirondack Marketing Inc. manufactures…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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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