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. From the following information, determine the plant-wide factory overhead rate:Overhead DirectLabor Hours Product A B Painting Dept.$250,000 10,000 16 4 Finishing Dept. 172,000 12,000 4 16 Totals$422,000 22,000 20 20 ======== ====== == == 1. $32.00 per dlh 2. $19.18 per dlh 3. $14.64 per dlh 4. $24.80 per dlh
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