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Case Company Allocates $5 A) 25,000 MH
B) 137,500 MH
C) 82,500 MH
D)

Question 90

Multiple Choice

Case Company allocates $5.00 overhead to each unit produced.The company uses a plantwide overhead rate with machine hours as the allocation base.Given the amounts below,how many machine hours does the company expect in department 2?
 Estimated:  Department 1  Department 2 Manufacturing overhead costs $250,000$150,000 Direct labor hours 8,000DLH12,000DLH Machine hours 55,000MH?MH\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department } 2 \\\text { Manufacturing overhead costs } & \$ 250,000 & \$ 150,000 \\\text { Direct labor hours } & 8 , 0 0 0 \mathrm { D L H} & 12,000 \mathrm { DLH } \\\text { Machine hours } & 55,000 \mathrm { MH } & ? \mathrm { MH }\end{array}


A) 25,000 MH
B) 137,500 MH
C) 82,500 MH
D) 88,000 MH
E) 33,000 MH

Correct Answer:

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