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Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Each unit requires 0.75 machine hours to produce. How much

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Each unit requires 0.75 machine hours to produce. How much overhead will be assigned to each unit produced given the following budgeted amounts?

Budgeted Data: Department 1 Department 2
Overhead costs $ 3,137,500 $ 1,565,000
Direct labor hours 165,000 DLH 265,000 DLH
Machine hours 265,000 MH 190,000 MH

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