Red Raider Company uses a plantwide overhead rate based on direct labor hours. Each unit requires 0.85 direct labor 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 $ 2,544,000 $ 921,000 Direct labor hours 175,000 DLH 117,000 DLH Machine hours 30,700 MH 8,700 MH

Multiple Choice $61.90 per unit $10.09 per unit $14.54 per unit $6.70 per unit $11.87 per unit