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Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company

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Crinkle Cut 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 plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is budgeted to be $423,630. The direct labor and direct materials costs are budgeted to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 24,000 units of CC1 and 93,000 units of CC2 next year. Direct Material per Unit CC1 CC2 $ 37.30 $ 25.40 Direct Labor Dollars per Unit $ 18.00 $ 15.60 Compute the plantwide overhead rate for next year. Multiple Choice $33.60 per DLH. $20.00 per DLH. $4.50 per DLH. $0.74 per DLH. $1.87 per DLH.

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