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 $580,400. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 35,000 units of CC1 and 104,000 units of CC2 next year.

	Direct Material per Unit			Direct Labor Dollars per Unit
CC1	$	38.40		$	17.60
CC2	$	26.50		$	16.40

Compute the plantwide overhead rate for next year.

Multiple Choice

• $20.00 per DLH.

• $1.92 per DLH.

• $34.00 per DLH.

• $0.89 per DLH.

• $5.00 per DLH.