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. From the following information, calculate the overhead rate per unit for Product A in painting department. Round to the nearest cent in the final calculation. Select the correct answer. $177.41 per dlh $532.22 per dlh $214.64 per dlh $16.51 per dlh

Explanation / Answer

A overhead =total overhead/total direct labor hours=344,880/20,888*13=214.64 per dlh.

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