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Multiple Choice QuestionLanden Company uses a single plantwide overhead rate of $100 per direct labor hour (DLH). Landen has two products as follows: basic chairs which used 20 DLH and deluxe chairs which used 35 DLH. What is the total amount allocated to these products?Multiple choice question.$3,500$1,500$2,000$5,500

Question

Multiple Choice QuestionLanden Company uses a single plantwide overhead rate of 100perdirectlaborhour(DLH).Landenhastwoproductsasfollows:basicchairswhichused20DLHanddeluxechairswhichused35DLH.Whatisthetotalamountallocatedtotheseproducts?Multiplechoicequestion.100 per direct labor hour (DLH). Landen has two products as follows: basic chairs which used 20 DLH and deluxe chairs which used 35 DLH. What is the total amount allocated to these products?Multiple choice question.3,5001,5001,5002,000$5,500

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Solution

To calculate the total amount allocated to these products, we need to multiply the direct labor hours (DLH) for each product by the overhead rate.

For basic chairs: 20 DLH * 100/DLH=100/DLH = 2,000

For deluxe chairs: 35 DLH * 100/DLH=100/DLH = 3,500

Then, add these two amounts together to get the total amount allocated to these products.

2,000+2,000 + 3,500 = $5,500

So, the total amount allocated to these products is $5,500.

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