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alexdok [17]
3 years ago
11

Adirondack Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead ra

te 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. $251,700 10,200 9 5 Finishing Dept. 61,700 11,900 5 6 Totals $313,400 22,100 14 11 Using a single plantwide rate, the factory overhead allocated per unit of Product A in the Painting Department is a.$127.62 per unit b.$14.18 per unit c.$616.91 per unit d.$222.09 per unit
Business
1 answer:
pantera1 [17]3 years ago
5 0

Adirondack Marketing Inc.'s Factory Overhead per unit of Product A is <em>d. </em><em>$222.09</em><em> per unit.</em>

Data and Calculations:

Overhead             Total       Direct Labor Hours  DLH per Product

                                                                              A                 B

Painting Dept.      $251,700     10,200                 9                 5

Finishing Dept.         61,700      11,900                 5                 6

Totals                   $313,400     22,100                14                 11

The overhead rate for a unit of Product A in the <u>Painting Department</u> = Total overhead in the Painting Department divided by Direct Labor Hours, multiplied by <em>direct labor hours per unit</em> of Product A.

= $222.09 ($251,700/10,200 x 9)

Thus, for a unit of Product A, the overhead rate in the <u>Painting Department</u> is $222.09.

Learn more about overhead allocation at brainly.com/question/14095583

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