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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 $ 1,260,000 $ 3,460,000 Direct
The following data relates to Spurrier Company's estimated amounts for next year.
Estimated: | Department 1 | Department 2 | |||||||
Manufacturing overhead costs | $ | 1,260,000 | $ | 3,460,000 | |||||
Direct labor hours | 548,000 | DLH | 798,000 | DLH | |||||
Machine hours | 98,000 | MH | 32,000 | 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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$3.51 per direct labor hour.
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$3.63 per direct labor hour.
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$2.30 per direct labor hour.
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$0.34 per direct labor hour.
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$0.54 per direct labor hour.
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