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

question 99

Multiple Choice

The following data relates to All-Out Company's estimated amounts for next year.
$\begin{array}{lcc}\text { Estimated: } & \text { Department 1 } & \text { Department 2 } \\\text { Manufacturing overhead costs } & \$ 200,000 & \$ 400,000 \\\text { Direct labor hours } & 60,000 \mathrm{DLH} & 80,000 \mathrm{DLH} \\\text { Machine hours } & 1,000 \mathrm{MH} & 3,000 \mathrm{MH}\end{array}$
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.

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Definitions:

Restrictions

Restrictions are limitations or conditions placed on something, such as legal agreements, to control or direct its use or activities.

Eminent Domain

The right of a government or its agent to expropriate private property for public use, with compensation.

Inherent Power

The authority possessed by a sovereign state or government without needing to be granted by a law, deriving from the very nature of the government's existence.

Government

The organization, or group of people governing an organized community, often a state, and responsible for the creation and enforcement of laws.