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Question
Yellow Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product RST.
| Direct material cost per unit of RST | $12 |
| Total estimated manufacturing overhead | $200,000 |
| Total cost per unit of RST | $75 |
| Total estimated machine hours | 100,000 MH |
| Direct labor cost per unit of RST | $23 |
A. 40 MH per unit of RST.
B. 2 MH per unit of RST.
C. 20 MH per unit of RST.
D. 37.5 MH per unit of RST.
E. 80 MH per unit of RST.
Answer
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