Case Company Allocates $5 A)25,000 MH
B)137,500 MH
C)82,500 MH
D)88,000 MH
E)33,000 MH

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? $$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department } 2 \\\text { Marufacturing overhead costs } & \$ 250,000 & \$ 150,000 \\\text { Direct labor hours } & { 8 , 0 0 0 D L H } & 12,000 \mathrm { DLH } \\\text { Machine hours } & 55,000 \mathrm { MH } & ? \mathrm { MH }\end{array}$$

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