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. $ 6.25 per dlhb. $14.77 per dlhc. $0.07 per dlhd. $25.00 per dlh