Western Company allocates $10 overhead to products based on the number of machine hours used. The company uses a plantwide overhead rate with machine hours as the allocation base. Given the amounts below, how many machine hours does the company expect in department 2?

Estimated:	Department 1					Department 2
Manufacturing overhead costs	$	263,000				$	163,000
Direct labor hours		9,300	DLH				25,000	DLH
Machine hours		16,300	MH				?	MH

Multiple Choice

• 35,600 MH

• 146,730 MH

• 87,830 MH

• 94,500 MH

• 26,300 MH

Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to solve for the amount of direct labor hours estimated per unit of product G2.

Direct material cost per unit of G2	$	6
Total estimated manufacturing overhead	$	318,000
Total cost per unit of G2	$	31
Total estimated direct labor hours		159,000	DLH
Direct labor cost per unit of G2	$	5.15

Multiple Choice

• 2.00 DLH per unit of G2.

• 9.93 DLH per unit of G2.

• 18.00 DLH per unit of G2.

• 0.79 DLH per unit of G2.

• 11.15 DLH per unit of G2.