Question
The following data relates to Spurrier Company's estimated amounts for next year. Estimated: Department 1 Department 2 Manufacturing overhead costs $ 1,420,000 $ 3,620,000 Direct
The following data relates to Spurrier Company's estimated amounts for next year.
| Estimated: | Department 1 | Department 2 | |||||
| Manufacturing overhead costs | $ | 1,420,000 | $ | 3,620,000 | |||
| Direct labor hours | 556,000 | DLH | 806,000 | DLH | |||
| Machine hours | 106,000 | MH | 40,000 | 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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$3.70 per direct labor hour.
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$3.83 per direct labor hour.
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$2.55 per direct labor hour.
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$0.37 per direct labor hour.
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$0.58 per direct labor hour.
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Auditing And Systems Exam Questions And Explanations
Authors: Irvin N. Gleim, William A. Hillison
13th Edition
1581945272, 978-1581945270
