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