Question

The following data relates to Lead Companys estimated amounts for next year.


Estimated: Department 1 Department 2
Manufacturing overhead costs $1,200,000 $3,400,000
Direct labor hours 560,000 DLH 780,000 DLH
Machine hours 91,000 MH 23,000 MH

What is the companys plantwide overhead rate if direct labor hours are the allocation base?
(Round to two decimal places)
A. $3.43 per direct labor hour.
B. $2.14 per direct labor hour.
C. $4.36 per direct labor hour.
D. $.29 per direct labor hour.
E. $.47 per direct labor hour.

Answer

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