Question

The following data relates to Spurrier Company's estimated amounts for next year.
Estimated: Department 1 Department 2
Manufacturing overhead costs $1,100,000 $3,300,000
Direct labor hours 540,000 DLH 790,000 DLH
Machine hours 90,000 MH 24,000 MH

What is the company's plantwide overhead rate if direct labor hours are the allocation base?
(Round to two decimal places)
A. $3.31 per direct labor hour.
B. $3.43 per direct labor hour.
C. $2.04 per direct labor hour.
D. $.30 per direct labor hour.
E. $.50 per direct labor hour.

Answer

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