Red raider company uses a plantwide overhead rate with

Question

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