Crinkle cut clothes company manufactures two products cc1

Reference no: EM13574853

Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $338,250. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year.

CC1: Direct material per unit $37.10, Direct Labor Dollars Per Unit $22.40
CC2: Direct material per unit $25.20, Direct Labor Dollars Per Unit $15.40

Compute the plantwide overhead rate for next year.

$28.00 per DLH.
$37.80 per DLH.
$1.35 per DLH.
$5.00 per DLH.
$.20 per DLH.

Reference no: EM13574853

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