a company allocates $7.50 overhead to each unit produced. the company uses a Pla

Question

a company allocates $7.50 overhead to each unit produced. the company uses a Plantwide overhead rate with direct labor hours as the allocation base. given the amounts below, how many direct labor hours does the company expect in department 2??

department 1 : manufacturing overhead costs $74,358

direct labor hours 6,610 DLH and machine hours 700 MH

department 2 : manufacturing overhead costs $49,572

direct labor hours ?? DLH and machine hours 800 MH

A. 9,914 DLH B. 6,612 DLH C. 3,109 DLH D. 7,454 DLH E. 16,254 DLH

Explanation / Answer

Total Overheads = 74358 + 49572 = 123930

Total Direct Labor Hours = 123930/7.5 = 16524

Direct Labor Hours for Department 2 = 16524 - 6610 = 9914

Answer is 9914 DLH

So Option A

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.