Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 440,000 units are expected to be produced requiring 1.5 machine 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	$	2,780,000		$	3,310,000
Direct labor hours		172,000	DLH		114,000	DLH
Machine hours		32,000	MH		10,000	MH

What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)

Multiple Choice:

Multiple Choice

• $21.29 per unit

• $145.00 per unit

• $25.54 per unit

• $217.50 per unit

• None of the choices