Determining the estimated amounts

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Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 460,000 units are expected to be produced taking 0.95 direct-labor hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

Estimated: Department 1 Department 2
Manufacturing overhead costs $2,542,000 $918,000
Direct labor hours 174,000 DLH 116,000 DLH
Machine hours 30,600 MH 8,600 MH

$62.17 per unit

$11.33 per unit

$14.61 per unit

$7.53 per unit

$11.93 per unit

Reference no: EM131812173

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