Red Raider Company Uses a Plantwide Overhead Rate with Direct

Multiple Choice

Red Raider Company uses a plantwide overhead rate with direct labor hours as the allocation base. Next year, 400,000 units are expected to be produced requiring 0.9 direct-labor hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

A) $19.00 per unit
B) $17.10 per unit
C) $139.00 per unit
D) $125.10 per unit
E) None of the choices