Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 540,000 units are expected to be produced requiring 0.90 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 $ 2,558,000 $ 942,000

Direct labor hours 182,000 DLH 124,000 DLH Machine hours 31,400 MH 9,400 MH

OPTIONS:

$6.82 per unit $60.08 per unit $10.29 per unit $14.05 per unit None of the choices