A company allocates $7.50 overhead to products based on the number of direct labor hours worked. 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?Estimated:Department 1Department 2Manufacturing overhead costs$74,358 $49,572 Direct labor hours 6,610DLH ?DLHMachine hours 700MH 800MH

A. 3,109 DLH
B. 9,914 DLH
C. 16,254 DLH
D. 6,612 DLH
E. 7,454 DLH


Answer: B

Business

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