The following data relates to Black-Out Company's estimated amounts for next year.Estimated:Department 1Department 2Manufacturing overhead costs$300,000 $400,000 Direct labor hours 60,000DLH 80,000DLHMachine hours 1,000MH 2,000MH What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.)
A. $5.00 per MH
B. $233.33 per MH
C. $4.90 per MH
D. $150.00 per MH
E. $100.00 per MH
Answer: B
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