Reference no: EM132591033

The following data relates to Spurrier Company's estimated amounts for next year.

Estimated:                                     Department 1                  Department 2

Manufacturing overhead costs          $1,100,000                  $3,300,000

Direct labor hours                         540,000DLH                790,000DLH

Machine hours                                 90,000MH                      24,000MH

Question 1: What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)

Multiple Choice

Option 1: $3.31 per direct labor hour.

Option 2: $3.43 per direct labor hour.

Option 3: $2.04 per direct labor hour.

Option 4: $.30 per direct labor hour.

Option 5: $.50 per direct labor hour.