Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 600,000 units are expected to be produced requiring .95 direct-labor 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

$

2,550,000

$

930,000

Direct labor hours

178,000

DLH

120,000

DLH

Machine hours

31,000

MH

9,000

MH