Question

The following data relates to Black-Out Company's estimated amounts for next year.
Estimated: Department 1 Department 2
Manufacturing overhead costs $300,000 $400,000
Direct labor hours 60,000 DLH 80,000 DLH
Machine hours 1,000 MH 2,000 MH

What is the company's plantwide overhead rate if machine hours are the allocation base?
(Round to two decimal places.)
A. $233.33 per MH
B. $150.00 per MH
C. $100.00 per MH
D. $4.90 per MH
E. $5.00 per MH

Answer

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