Case Company Allocates $5 A) 25,000 MH

question 53

Multiple Choice

Case Company allocates $5.00 overhead to each unit produced. 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?
$$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department 2 } \\\text { Manufacturing overhead costs } & \$ 250,000 & \$ 150,000 \\\text { Direct labor hours } & 8,000 \mathrm { DLH } & 12,000 \mathrm { DLH } \\\text { Machine hours } & 55,000 \mathrm { MH } & ? \mathrm { MH }\end{array}$$

• A) 25,000 MH.
• B) 137,500 MH.
• C) 82,500 MH.
• D) 88,000 MH.
• E) 33,000 MH.

---

Definitions:

Anal Area

The region surrounding the anus, which is the external opening of the rectum, important in the defecation process and subject to various medical conditions.

Steatorrhea

The presence of excess fat in feces, usually indicative of malabsorption issues or diseases affecting the pancreas, liver, or gastrointestinal tract.

Bile Pigment

A component of bile, responsible for the yellow-green color, produced during the breakdown of hemoglobin in red blood cells.

Prostatitis

Inflammation of the prostate gland, which can cause urinary pain, difficulty urinating, and pelvic discomfort.