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Question
The following data relates to All-Out Companys estimated amounts for next year.
| Estimated: | Department 1 | Department 2 |
| Manufacturing overhead costs | $200,000 | $400,000 |
| Direct labor hours | 60,000 DLH | 80,000 DLH |
| Machine hours | 1,000 MH | 3,000 MH |
What is the companys plantwide overhead rate if machine hours are the allocation base?
(Round to two decimal places.)
A. $200.00 per MH
B. $150.00 per MH
C. $100.00 per MH
D. $4.29 per MH
E. $5.00 per MH
Answer
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