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The following data relates to Spurrier Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $ 1,300,000 $ 3,500,000 Direct
The following data relates to Spurrier Company's estimated amounts for next year.
| Estimated: | Department 1 | Department 2 | |||||
| Manufacturing overhead costs | $ | 1,300,000 | $ | 3,500,000 | |||
| Direct labor hours | 550,000 | DLH | 800,000 | DLH | |||
| Machine hours | 100,000 | MH | 34,000 | 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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$0.35 per direct labor hour.
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$0.55 per direct labor hour.
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$3.56 per direct labor hour.
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$2.36 per direct labor hour.
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$3.69 per direct labor hour.
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