FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
   B 
Painting Dept. $251,500   11,000   7 7
Finishing Dept. 73,000   10,600   2 3
    Totals $324,500   21,600   9 10


The single plantwide factory overhead rate for Adirondack Marketing Inc. is

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.
DLH per Product
Painting Dept.
Finishing Dept.
Totals
Overhead
$251,500
73,000
$324,500
Total
Direct
Labor Hours
11,000
10,600
21,600
A
7
2
9
B
7
3
10
The single plantwide factory overhead rate for Adirondack Marketing Inc. is
Oa. $15.02 per dlh
Ob. $22.86 per dlh
Oc. $6.89 per dlh
Od. $2.11 per dlh
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Transcribed Image Text: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. DLH per Product Painting Dept. Finishing Dept. Totals Overhead $251,500 73,000 $324,500 Total Direct Labor Hours 11,000 10,600 21,600 A 7 2 9 B 7 3 10 The single plantwide factory overhead rate for Adirondack Marketing Inc. is Oa. $15.02 per dlh Ob. $22.86 per dlh Oc. $6.89 per dlh Od. $2.11 per dlh
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