Western Company allocates $10 overhead to products based on the number of machine hours used. The company uses a plantwide overhead rate with machine hours as the allocation base. Given the amounts below, how many machine hours does the company expect in department 2?Estimated:Department 1Department 2Manufacturing overhead costs$250,000 $150,000 Direct labor hours 8,000DLH 12,000DLHMachine hours 15,000MH ?MH
A. 25,000 MH
B. 33,000 MH
C. 88,000 MH
D. 82,500 MH
E. 137,500 MH
Answer: A
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