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Question Content Area Adirondack Marketing Inc. manufactures two products, A and B. Presently, the...

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Accounting

Question Content Area
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. $250,00010,000164
Finishing Dept. 75,00012,000416
Totals $325,00022,0002020
Using a single plantwide rate (rounded to the nearest cent), the factory overhead allocated per unit of Product A in the Painting Department is
a. $147.70 per unit
b. $161.00 per unit
c. $325.00 per unit
d. $236.32 per unit

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