Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 400,000 units are expected to be produced taking .90 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	$2,530,000	$900,000
Direct labor hours	168,000 DLH	110,000 DLH
Machine hours	30,000 MH	8,000 MH

$12.34 per unit

$63.95 per unit

$7.32 per unit

$11.11 per unit

$15.06 per unit

Answer rating: 100% (QA)

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