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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. Line Item Description Overhead Total Direct Labor Hours DLH per Product A DLH per Product B Painting Dept. $249,000 11,500 3 5 Finishing Dept. 86,300 10,900 4 8     Totals $335,300 22,400 7 13 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a.$21.65 per dlh b.$7.92 per dlh c.$14.97 per dlh d.$2.86 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. Line Item Description Overhead Total Direct Labor Hours DLH per Product A DLH per Product B Painting Dept. $249,000 11,500 3 5 Finishing Dept. 86,300 10,900 4 8     Totals $335,300 22,400 7 13 The single plantwide factory overhead rate for Adirondack Marketing Inc. is a.$21.65 per dlh b.$7.92 per dlh c.$14.97 per dlh d.$2.86 per dlh

FINANCIAL ACCOUNTING
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.

    Line Item Description

    Overhead    		 Total
    Direct
    Labor Hours    		 DLH per
    Product A    		 DLH per
    Product B
    Painting Dept. $249,000 11,500 3 5
    Finishing Dept. 86,300 10,900 4 8
        Totals $335,300 22,400 7 13

    The single plantwide factory overhead rate for Adirondack Marketing Inc. is
    a.$21.65 per dlh
    b.$7.92 per dlh
    c.$14.97 per dlh
    d.$2.86 per dlh
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