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wolverine
11 days ago
15

Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed b

elow. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $338,250. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year. Direct Material per Unit Direct Labor Dollars per Unit CC1 $ 37.10 $ 22.40 CC2 $ 25.20 $ 15.40 Compute the plantwide overhead rate for next year.
Business
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