How many direct labor hours does the company expect


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?

  • department 1 : manufacturing overhead costs $74,358
  • direct labor hours 6,610 DLH and machine hours 700 MH
  • department 2 : manufacturing overhead costs $49,572
    • direct labor hours ?? DLH and machine hours 800 MH

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Accounting Basics: How many direct labor hours does the company expect
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