Red Raider Company Uses a Plantwide Overhead Rate with Machine

Multiple Choice

Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 400,000 units are expected to be produced requiring 1.2 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

A) $19.00 per unit
B) $139.00 per unit
C) $22.68 per unit
D) $166.80 per unit
E) None of the choices