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

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.