Gray Company uses a plantwide overhead rate with machine hours as the allocation base. Use the following information to solve for the amount of machine hours estimated per unit of product Q.Direct material cost per unit of Q$15 Total estimated manufacturing overhead$100,000 Total cost per unit of Q$60 Total estimated machine hours 200,000MHDirect labor cost per unit of Q$30
A. 0.75 MH per unit of Q.
B. 30 MH per unit of Q.
C. 50 MH per unit of Q.
D. 17.5 MH per unit of Q.
E. 0.50 MH per unit of Q.
Answer: B
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