A Company Allocates $7 A) 9,914 DLH

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?
$$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department 2 } \\\text { Manufacturing overhead costs } & \$ 74,358 & \$ 49,572 \\\text { Direct labor hours } & 6,610 \mathrm { DLH } & ? \mathrm { DLH } \\\text { Machine hours } & 700 \mathrm { MH } & 800 \mathrm { MH }\end{array}$$

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