Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 570,000 units are expected to be produced requiring 0.95 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	$	2,564,000			$	951,000
Direct labor hours		185,000	DLH			127,000	DLH
Machine hours		31,700	MH			9,700	MH

Multiple Choice

• $10.70 per unit

• $59.34 per unit

• $13.86 per unit

• None of the choices

• $7.09 per unit