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Question
The following data relates to Tier One Companys estimated amounts for next year.
| Estimated: | Department 1 | Department 2 |
| Manufacturing overhead costs | $50,000 | $40,000 |
| Direct labor hours | 150,000 DLH | 200,000 DLH |
| Machine hours | 300,000 MH | 400,000 MH |
What is the companys plantwide overhead rate if direct labor hours are the allocation base?
(Round to two decimal places.)
A. $3.89 per DLH
B. $3.00 per DLH
C. $0.33 per DLH
D. $0.26 per DLHE. $0.20 per DLH
Answer
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