Yellow Company Uses a Plantwide Overhead Rate with Machine Hours

Multiple Choice

Yellow 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 RST. $\begin{array}{lr} \text {Direct material cost per unit of RST } &\$ 12 \\ \text {Total estimated manufacturing overhead } &\$ 200,000 \\ \text {Total cost per unit of RST } &\$ 75 \\ \text { Total estimated machine hours } &100,000 \\ &\mathrm{MH} \\ \text { Direct labor cost per unit of RST } &\$ 23\end{array}$

A) 40 MH per unit of RST.
B) 2 MH per unit of RST.
C) 20 MH per unit of RST.
D) 37.5 MH per unit of RST.
E) 80 MH per unit of RST.