Calculate the overhead rate per unit for product

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Reference no: EM13963592

Adirondak Marketing Inc. manufactures two products, A and B. Presently; the company uses a single plant wide 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
	Overhead	Total Direct Labor Hours	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.

a. $325.00 per unit

b. $147.70 per unit

c. $236.32 per unit

d. $161.00 per unit

Reference no: EM13963592

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