A Company Allocates $7 A) 9,914 DLH
B) 6,612 DLH
C) 3,109 DLH
D)

Multiple Choice

A company allocates $7.50 overhead to each unit produced.The company uses a plantwide overhead rate with direct labor hours as the allocation base.Given the amounts below,how many direct labor hours does the company expect in department 2?
$$\begin{array} { l c c } \text { Estirnated: } & \text { Department 1 } & \text { Department } 2 \\\text { Manufacturing overhead costs } & \$ 74,358 & \$ 49,572 \\\text { Direct labor hours } & 6,610 \mathrm { DLH } & ? \mathrm { DLH } \\\text { Machine hours } & 700 \mathrm { MH } & \mathbf { 8 0 \mathrm { MH } }\end{array}$$

A) 9,914 DLH
B) 6,612 DLH
C) 3,109 DLH
D) 7,454 DLH
E) 16,254 DLH