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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 estimated to be $310,960. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $25 per hour and the company expects to manufacture 23,000 units of CC1 and 92,000 units of CC2 next year. CC1 CC2 Direct Material per Unit $37.20 $25.30 Direct Labor Dollars per Unit $22.50 $15.50 Compute the plantwide overhead rate for next year. Multiple Choice $0.22 per DLH. $25.00 per DLH. $38.00 per DLH. $4.00 per DLH. $1.49 per DLH.

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