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Western Company allocates $10.00 overhead to products based on the number of machine hours used. The company uses a plantwide overhead rate with machine hours

Western Company allocates $10.00 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 $255,000 $155,000
Direct labor hours 8,500 DLH 17,000 DLH
Machine hours 15,500 MH ? MH

Multiple Choice

  • 141,050 MH

  • 84,550 MH

  • 25,500 MH

  • 34,000 MH

  • 90,500 MH

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