Question

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 600,000 units are expected to be produced taking 0.75 machine 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 $ 3,107,500 $ 1,520,000 Direct labor hours 150,000 DLH 250,000 DLH Machine hours 250,000 MH 175,000 MH

Answer 1

Answer: $8.17 per unit

Step-by-step explanation:

($3,107,500 + $1,520,000)/(250,000 + 175,000) MH = $10.89 per MH

$10.89 × .75 = $8.17 per unit

Answer 2

I tried working it out idk sorry