Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 710,000 units are expected to be produced taking 0.85 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated:	Department 1				Department 2
Manufacturing overhead costs	$	3,129,500			$	1,553,000
Direct labor hours		161,000	DLH			261,000	DLH
Machine hours		261,000	MH			186,000	MH

Multiple Choice

• $11.99 per unit

• $8.90 per unit

• $4.33 per unit

• $11.10 per unit

• $10.48 per unit