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QUESTION 14 5 points Save Ans The following data relates to Patterson Companys estimated amounts for next year Department 1
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Answer #1

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Calculation of comapny's plantwide overhead rate based on DLH:

Overhead Cost :

Department A: $50,000

Department B : $60,000

Plantwide overhead costs : $50,000 + $60,000 =  $110,000

DLH :

Department A: 180,000

Department B : 200,000

Plantwide Direct labor Hours (DLH) = 180,000 + 200,000 = 380,000

Overhead Cost per DLH : $110,000 / 380 ,000 = $0.29

So correct answer is option C.

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