The following data relates to Spurrier Company's estimated amounts for next year.Estimated:Department 1Department 2Manufacturing overhead costs$1,100,000 $3,300,000 Direct labor hours 540,000DLH 790,000DLHMachine hours 90,000MH 24,000MH What is the company's plantwide overhead rate if direct labor hours are the allocation base? (Round your answer to two decimal places.)
A. $3.31 per direct labor hour.
B. $2.04 per direct labor hour.
C. $0.30 per direct labor hour.
D. $3.43 per direct labor hour.
E. $0.50 per direct labor hour.
Answer: A
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