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

(74358+49572)/(6610+x)= 7.50 x=9914 A)

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