Red Raider Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 400,000 units are expected to be produced requiring 1.2 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?Estimated:Department 1Department 2Manufacturing overhead costs$2,530,000 $2,752,000 Direct labor hours 168,000DLH 110,000DLHMachine hours 30,000MH 8,000MH
A. $22.68 per unit
B. $19.00 per unit
C. $166.80 per unit
D. $139.00 per unit
E. None of the choices
Answer: C
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