Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory
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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. | $250,000 | 10,000 | 16 | 4 | ||
Finishing Dept. | 75,000 | 12,000 | 4 | 16 | ||
Totals | $325,000 | 22,000 | 20 | 20 |
Calculate the plantwide factory overhead rate:
a. $2.33 per dlh
b. $16.04 per dlh
c. $26.29 per dlh
d. $7.53 per dlh
Related Book For
Process Dynamics And Control
ISBN: 978-0471000778
2nd Edition
Authors: Dale E. Seborg, Thomas F. Edgar, Duncan A. Mellich
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