The Following Data Relates to All-Out Company's Estimated Amounts for Next

question 1

Multiple Choice

The following data relates to All-Out Company's estimated amounts for next year.
$$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department } 2 \\\text { Manufacturing overhead costs } & \$ 200,000 & \$ 400,000 \\\text { Direct labor hours } & 60,000 \mathrm { DLH } & 8 0 , 0 0 0 \mathrm { DLH } \\\text { Machine hours } & 1,000 \mathrm { MH } & 3 , 0 0 0 \mathrm { MH } \end{array}$$
What is the company's plantwide overhead rate if machine hours are the allocation base?
(Round to two decimal places.)

• A) $200.00 per MH
• B) $150.00 per MH
• C) $100.00 per MH
• D) $4.29 per MH
• E) $5.00 per MH