Adirondak Marketing Inc. manufactures two products, A and B. Presently, the comp
ID: 2454087 • Letter: A
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.
Overhead Total
Direct
Labor Hours DLH per Product A B Painting Dept. $247,698 11,199 3 11 Finishing Dept. 81,062 10,070 4 4 Totals $328,760 21,269 7 15
Explanation / Answer
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the comp
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