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Save & Exit Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs
$20.00 per DLH $0.74 per DLH $4.50 per DLH $1.87 per DLH $33.60 per DLH Prev 1 of 10 ! Next F1 F3 F4 FS F6 F7 F8 F9
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Answer #1

Direct Labor hours needed in total

CC1 = (18 / 20) *24,000 = 21,600

CC2 = (15.60/20)*93,000 = 72,540

Total direct labor cost = 94,140

Predetermined overhead rate = Estimated overhead / 94,140

= 423,630/94,140

= 4.50 per DLH

Option C is the answer

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