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

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Accounting

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.
Line Item Description
Overhead Total
Direct
Labor Hours DLH per
Product A DLH per
Product B
Painting Dept. $259,1009,70039
Finishing Dept. 62,50010,70028
Totals $321,60020,400517
The single plantwide factory overhead rate for Adirondack Marketing Inc. is
a. $4.40 per dlh
b. $15.76 per dlh
c. $26.71 per dlh
d. $5.84 per dlh

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