Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next … 1 answer below »

 
   

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Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 770,000 units are expected to be produced taking 0.85 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 $3,141,500 $1,571,000 Direct labor hours 167,000 DLH 267,000 DLH Machine hours 267,000 MH 192,000 MH

$10.86 per unit

$8.73 per unit

$4.22 per unit

$11.77 per unit

$10 per unit