Orange Company Uses a Plantwide Overhead Rate with Machine Hours

Multiple Choice

Orange Company uses a plantwide overhead rate with machine hours as the allocation base.Use the following information to solve for the amount of machine hours estimated per unit of product Q. $\begin{array}{lr} \text { Direct material cost per unit of Q } &\$ 10 \\ \text { Total estimated manufacturing overhead } &\$ 100,000 \\ \text { Total cost per unit of Q } &\$ 65 \\ \text { Total estimated machine hours } &200,000 \\&\mathrm{MH} \\ \text { Direct labor cost per unit of Q } &\$ 20\end{array}$

A) 35 MH per unit of Q.
B) .50 MH per unit of Q.
C) 70 MH per unit of Q.
D) 17.5 MH per unit of Q.
E) 30 MH per unit of Q.