Greene Company Uses a Plantwide Overhead Rate with Direct Labor

Multiple Choice

Greene Company uses a plantwide overhead rate with direct labor hours as the allocation base.Use the following information to solve for the amount of direct labor hours estimated per unit of product G2. $\begin{array}{lr} \text { Dreect material cost per unit of G 2 } &\$ 7 \\ \text { Total estimated manufacturing overhead } &\$ 795,000 \\ \text {Total cost per unit of G 2 } &\$ 20 \\ \text { Total estimated direct labor hours } &530,000 \\&\mathrm{DLH} \\ \text { Direct labor cost per unit of G 2 } &\$ 3.70\end{array}$

A) 1.5 DLH per unit of G2.
B) 6.2 DLH per unit of G2.
C) 9.3 DLH per unit of G2.
D) .66 DLH per unit of G2.
E) 14.09 DLH per unit of G2.