Adirondak 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. Calculate the overhead rate per unit for Product A in painting department:
A) $236.32 per unit
B) $325.00 per unit
C) $147.70 per unit
D) $161.00 per unit

Question

Adirondak 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.  Calculate the overhead rate per unit for Product A in painting department:
A) $236.32 per unit 
B) $325.00 per unit 
C) $147.70 per unit 
D) $161.00 per unit

Quizplus · Accepted Answer

The Answer of Adirondak 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.  Calculate the overhead rate per unit for Product A in painting department:
A) $236.32 per unit 
B) $325.00 per unit 
C) $147.70 per unit 
D) $161.00 per unit