The Following Data Relates to Tier One Company's Estimated Amounts

question 104

Multiple Choice

The following data relates to Tier One Company's estimated amounts for next year. $$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Departnent } 2 \\\text { Marufacturing overhead costs } & \$ 50,000 & \$ 40,000 \\\text { Direct labor hours } & 150,000 D L H & 200,000 \mathrm { DLH } \\\text { Machine hours } & 300,000 \mathrm { MH } & 400,000 \mathrm { MH }\end{array}$$ What is the company's plantwide overhead rate if direct labor hours are the allocation base?
(Round to two decimal places.)

• A)$3.89 per DLH
• B)$3.00 per DLH
• C)$0.33 per DLH
• D)$0.26 per DLHE.$0.20 per DLH

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