Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q.

Direct material cost per unit of Q	$	28
Total estimated manufacturing overhead	$	158,200
Total cost per unit of Q	$	112
Total estimated machine hours		226,000	MH
Direct labor cost per unit of Q	$	56

Multiple Choice

• 86 MH per unit of Q.

• 0.70 MH per unit of Q.

• 0.61 MH per unit of Q.

• 42.70 MH per unit of Q.

• 40 MH per unit of Q.