Question

The following data relates to Patterson Company's estimated amounts for next year.
Estimated: Department 1 Department 2
Manufacturing overhead costs $50,000 $60,000
Direct labor hours 180,000 DLH 200,000 DLH
Machine hours 200,000 MH 400,000 MH

What is the company's plantwide overhead rate if direct labor hours are the allocation base?
(Round to two decimal places.)
A. $3.45 per DLH
B. $5.45 per DLH
C. $0.29 per DLH
D. $0.26 per DLHE. $0.20 per DLH

Answer

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