Longfellow marketing inc manufactures two products a and b

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Longfellow Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plant-wide factory overhead rate for allocating overhead. From the following information, using a single plant-wide rate, determine the overhead rate per unit for Product A:

Overhead for Painting Dept: $248,000

Overhead for Finishing Dept: $72,000

Total Overhead for both Dept: $320,000

Direct labor Hours (dlh) for Painting Dept: 10,000 dlh

Direct labor Hours (dlh) for Finishing Dept: 10,000 dlh

Total labor hours for both depts: 20,000 dlh

Product A: Spent 16 dlh in Painting dept and 4 dlh in the finishing dept equaling a total of 20 dlh

Product B: Spent 4 dlh in Painting dept and 16 dlh in the finishing dept equaling a total of 20 dlh

Reference no: EM13599373

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