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 Painting Dept. Finishing Dept. Overhead $245,100 Totals 63,500 Total Direct Labor Hours 9,300 $308,600 11,100 DLH per Product A 6 4 DLH per Product B 20,400 Using a single plantwide rate (rounded to the nearest cent), the factory overhead allocated per unit of Product A in the Painting Department is a. $632.52 per unit b. $90.78 per unit c. $15.13 per unit d. $158.13 per unit 10 9 5 14

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 Painting Dept. Finishing Dept. Overhead $245,100 Totals 63,500 Total Direct Labor Hours 9,300 $308,600 11,100 DLH per Product A 6 4 DLH per Product B 20,400 Using a single plantwide rate (rounded to the nearest cent), the factory overhead allocated per unit of Product A in the Painting Department is a. $632.52 per unit b. $90.78 per unit c. $15.13 per unit d. $158.13 per unit 10 9 5 14

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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