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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

  • $3.51 per direct labor hour.

  • $3.63 per direct labor hour.

  • $2.30 per direct labor hour.

  • $0.34 per direct labor hour.

  • $0.54 per direct labor hour.

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