Multiple Choice
Crinkle Cut Clothes Company manufactures two products CC1 and CC2.Current direct material and direct labor costs are detailed below.Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base.Next year's overhead is estimated to be $338,250.The direct labor and direct materials costs are estimated to be consistent with the current year.Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year. 
Compute the plantwide overhead rate for next year.
A) $28.00 per DLH.
B) $37.80 per DLH.
C) $1.35 per DLH.
D) $5.00 per DLH.
E) $0.20 per DLH.
Correct Answer:
Verified
Correct Answer:
Verified
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