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the following data relates to patterson company's budgeted amounts for next year. budgeted data: department 1 department 2 overhead costs $ 66,000 $ 87,000 direct labor hours 189,000 dlh 209,000 dlh machine hours 209,000 mh 409,000 mh what is the company's plantwide overhead rate if direct labor hours are the allocation base? (round your answer to two decimal places.) multiple choice $2.65 per dlh $4.61 per dlh $0.38 per dlh $0.31 per dlh $0.32 per dlh

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varshamittal029

The answer is $ 0.38 direct labor hours. The answer would have been different if the allocation base was done as per machine hours. But since it is as per direct labor hours, hence the above-stated figure is the answer.

In this given question the allocation base is the direct labor hours so at first, we need to sum up the overhead costs of both the departments following up with the summation of the direct labor hours incurred on both departments. Lastly, we will divide the total overhead cost by the total direct labor hours to arrive at the company's plantwide overhead rate.

=> $(66,000+87,000)/ (189,000+209,000) dlh. = $0.38

Conclusively, about the plantwide overhead rate we can say that it just a technique applied to distribute its overhead costs to the products it manufactures.

To learn more about plantwide overhead rate follow the link:

https://brainly.com/question/17009083

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