Question: Case Company allocates $5 overhead to each unit produced. The company uses a plantwide overhead rate with machine hours as the allocation base. Given the

Case Company allocates $5 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?

Estimated: Department1 Department2
Manufacturing overhead costs $440,000 $245,000
Direct labor hours 46,000 DLH 50,000 DLH
Machine hours 74,000 MH ? MH

109,000 MH

63,000 MH

308,000 MH

143,300 MH

183,000 MH

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