Question

A company allocates $7.50 overhead to each unit produced. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor hours does the company expect in department 2?
Estimated: Department 1 Department 2
Manufacturing overhead costs $74,358 $49,572
Direct labor hours 6,610 DLH ? DLH
Machine hours 700 MH 800 MH

A. 9,914 DLH
B. 6,612 DLH
C. 3,109 DLH
D. 7,454 DLH
E. 16,254 DLH

Answer

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