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The following data relates to Patterson Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $ 75,000 $ 102,000 Direct
The following data relates to Patterson Company's estimated amounts for next year.
Estimated: | Department 1 | Department 2 | |||||
Manufacturing overhead costs | $ | 75,000 | $ | 102,000 | |||
Direct labor hours | 194,000 | DLH | 214,000 | DLH | |||
Machine hours | 214,000 | MH | 414,000 | 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
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a) $2.34 per DLH
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b) $4.27 per DLH
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c) $0.43 per DLH
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d) $0.34 per DLH
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e) $0.36 per DLH
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