The following data relates to Mangini Company's estimated amounts for next year. $\begin{array}{lcc}
\text { Estimated: } & \text { Department 1 } & \text { Department 2 } \
\text { Manufacturing overhead costs } & \$ 320,000 & \$ 400,000 \
\text { Direct labor hours } & 65,000 \mathrm{DLH} & 75,000 \mathrm{DLH} \
\text { Machine hours } & 2,000 \mathrm{MH} & 2,500 \mathrm{MH}
\end{array}$ What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.)
A) $200.00 per MH
B) $150.00 per MH
C) $160.00 per MH
D) $31.11 per MH
E) $5.14 per MH

Question

Quizplus · Accepted Answer

The total manufacturing overhead costs are $320,000 + $400,000 = $720,000. The total machine hours are 2,000 + 2,500 = 4,500 MH. The plantwide overhead rate is $720,000 / 4,500 MH = $160.00 per MH.

The Following Data Relates to Mangini Company's Estimated Amounts for Next