Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

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 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

Sagot :

anthougo

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

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 Painting Department = Total overhead in the Painting Department divided by Direct Labor Hours, multiplied by direct labor hours per unit of Product A.

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

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

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

We hope this was helpful. Please come back whenever you need more information or answers to your queries. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.