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 3,5002,000$5,500
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 * 2,000
For deluxe chairs: 35 DLH * 3,500
Then, add these two amounts together to get the total amount allocated to these products.
3,500 = $5,500
So, the total amount allocated to these products is $5,500.
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