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Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide...

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.     75,000 12,000 4 16
Totals $325,000 22,000 20 20


Calculate the overhead rate per unit for Product A in the painting department of Adirondack Marketing Inc.

a. $236.32 per unit

b. $325.00 per unit

c. $147.70 per unit

d. $161.00 per unit

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Answer #1

Ans:- Option A) $236.32

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