Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 470,000 units are expected to be produced requiring 0.85 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	$	2,544,000				$	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

• None of the choices