The following data relates to Patterson Company's estimated amounts for next year. What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.) \bold{ ext{(Round your answer to two decimal places.) }} (Round your answer to two decimal places.) A) $3.45 per DLHB) $5.45 per DLHC) $0.29 per DLHD) $0.26 per DLHE) $0.20 per DLH

Question

The following data relates to Patterson Company's estimated amounts for next year.  What is the company's plantwide overhead rate if direct labor hours are the allocation base?   (Round your answer to two decimal places.)  \bold{	ext{(Round your answer to two decimal places.) }} (Round your answer to two decimal places.)  A) $3.45 per DLHB) $5.45 per DLHC) $0.29 per DLHD) $0.26 per DLHE) $0.20 per DLH

YAZID ABDULAZIZ M ALSHAIBANI · Accepted Answer

Final Answer : C, Explanation :  To find the plantwide overhead rate, we need to divide the estimated total overhead costs by the estimated total direct labor hours. ($95,000 + $35,000 + $25,000 = $155,000 for total overhead costs, and 535 direct labor hours for total direct labor hours). Therefore, the plantwide overhead rate is $155,000 ÷ 535 = $289.72 per DLH. Rounding this to two decimal places gives us $0.29 per DLH, which is option C.

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