Question

Spates, Inc., manufactures and sells two products Product H2 and Product Eo Data concerning the expected production of each product and the expected total direct labor hours (DLHS) required to produce that output appear below Expected Production 270 Direct Labor- Hours Per Unit 7.7 Total Direct Labor-Hours 2,079 1,809 278 Product H2 Product E9 Total direct labor hours 3,888 The company's expected total manufacturing overhead is $274,968 If the company allocates all of its overhead based on direct labor hours, the overhead assigned to each unit of Product H2 would be closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $79.34 per unit

Answer 1

Correct option is: D. $544.54
Workings:
Plant wide overhead rate per direct labor hour	=	(Total overhead cost / Total Direct labor hours)
	=	($274968 / 3888)
	=	$    70.72	per direct labor hour
Overhead assigned to per unit of Product H2	=	7.7 direct labor hours X $70.72
	=	$ 544.54