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

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Accounting

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.

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