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Bitty's Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to

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Bitty's Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plant-wide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $338,250. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year. Direct Direct Material Labor Dollars per Unit per Unit CC1 $37.10 $22.40 CC2 $25.20 $15.40 Compute the plant-wide overhead rate for next year. $1.35 per DLH $28.00 per DLH. $37.80 per DLH O $.20 per DLH. $5.00 per DLH

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