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

question 161

Multiple Choice

The following data relates to Tier One Company's estimated amounts for next year.
$\begin{array}{lcc}\text { Estimated: } & \text { Department 1 } & \text { Department 2 } \\\text { Manufacturing overhead costs } & \$ 50,000 & \$ 40,000 \\\text { Direct labor hours } & 150,000 \mathrm{DLH} & 200,000 \mathrm{DLH} \\\text { Machine hours } & 300,000 \mathrm{MH} & 400,000 \mathrm{MH}\end{array}$
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 DLH.
• E) $0.20 per DLH.

---

Definitions:

Empirical Data

Information that is based on observation or experimentation rather than theory or logic.

Potential Weakness

An inherent deficiency or susceptibility that may lead to failure or vulnerability in specific situations.

Research Subjects

Individuals or entities upon which scientific investigations are conducted to gather data and test hypotheses in various fields of study.

Life Records

Documentation or data pertaining to an individual’s experiences, achievements, and personal history.