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
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
Adirondack 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. Total DLH per Product Direct Labor Hours A Overhead B Painting Dept. 11,900 $256,400 84,400 $340,800 6 10 65 Finishing Dept. 11,000 Totals 22,900 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. a. $14.88 per dlh b. $7.67 per dih...
:( 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. DLH per Product Total Direct Labor Hours Overhead $247,100 Painting Dept. Finishing Dept. 84,700 10,600 10,900 21,500 Totals $331,800 Calculate the plantwide factory overhead rate for Adirondack Marketing Inc. a. $7.77 per dih b. $15.43 per dih c. $23.31 per dih...
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