Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide...
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. | $244,500 | 9,300 | 3 | 5 | ||
| Finishing Dept. | 84,300 | 11,200 | 6 | 7 | ||
| Totals | $328,800 | 20,500 | 9 | 12 | ||
The single plantwide factory overhead rate for Adirondack Marketing
Inc. is
a.$2.33 per dlh
b.$16.04 per dlh
c.$26.29 per dlh
d.$7.53 per dlh
Homework Answers
The single plantwide factory overhead rate for Adirondack Marketing Inc = Total Overhead / Total Direct Labor Hours
= 328,800 / 20,500 direct labor hours
= $ 16.04 per dlh
Answer : b.$16.04 per dlh
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