[The following information applies to the questions displayed below.]Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table:Direct materials$380,000 Direct labor Department A (6,000 DLH × $25 per DLH)$150,000 Department B (35,125 DLH × $16 per DLH)$562,000 Machine Hours Department A 24,000MHDepartment B 32,000MH Wall Nuts' total expected overhead costs and related overhead data are shown below. Department ADepartment BDirect labor hours 67,000DLH 170,000DLHMachine hours 100,000MH 80,000MHManufacturing overhead costs$450,000 $600,000 Use the above data for Wall
Nuts, Inc. to compute the total manufacturing cost per unit of oak paneling assuming the company uses departmental overhead rates based on machine hours in Department A and machine hours in Department B.
A. $18.20
B. $27.30
C. $21.95
D. $36.00
E. $8.70
Answer: D
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