The Following Data Relates to Lead Company's Estimated Amounts for Next

question 76

Multiple Choice

The following data relates to Lead Company's estimated amounts for next year.
$$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department 2 } \\\text { Manufacturing overhead costs } & \$ 1,200,000 & \$ 3,400,000 \\\text { Direct labor hours } & 560,000 \mathrm { DLH } & 780,000 \mathrm { DLH } \\\text { Machine hours } & 91,000 \mathrm { MH } & 23,000 \mathrm { MH }\end{array}$$
What is the company's plantwide overhead rate if direct-labor hours are the allocation base?
(Round to two decimal places)

• A) $3.43 per direct labor hour.
• B) $2.14 per direct labor hour.
• C) $4.36 per direct labor hour.
• D) $.29 per direct labor hour.
• E) $.47 per direct labor hour.

---

Definitions:

Post-Traumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.

Postpartum Depression

A type of clinical depression that can affect women, and sometimes men, after childbirth.

Breast-Feeding

The feeding of babies and young children with milk from a woman's breast.

Couvade

A cultural phenomenon in some societies where fathers experience pregnancy symptoms and rituals mimicking childbirth alongside the pregnant mother.