Calculate the plantwide factory overhead rate for Adirondack Marketing Inc.
A) $25.00 per dlh
B) $0.07 per dlh
C) $14.77 per dlh
D) $ 6.25 per dlh

Question

Quizplus · Accepted Answer

To calculate the plantwide factory overhead rate, we need to divide the total budgeted factory overhead by the total budgeted direct labor hours. 
Total budgeted factory overhead = $2,955,000
Total budgeted direct labor hours = 199,500
Plantwide factory overhead rate = Total budgeted factory overhead / Total budgeted direct labor hours
Plantwide factory overhead rate = $2,955,000 / 199,500
Plantwide factory overhead rate = $14.77 per dlh. Therefore, the best choice is C.

Calculate the Plantwide Factory Overhead Rate for Adirondack Marketing Inc