Adirondak Marketing Inc. manufactures two products, A and B. Presently, the comp

Question

Adirondak 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.
$250,000
10,000
16
4
Finishing Dept.
72,000
12,000
4
16
Totals
$322,000
22,000
20
20




Calculate the plantwide factory overhead rate:
A. $25.00 per dlh
B. $32.20 per dlh
C. $14.64 per dlh
D. $ 8.05 per dlh

Explanation / Answer

C. $14.64 per dlh

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.