Question

Landen 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?

Answer 1

Answer:

$5,500

Step-by-step explanation:

Since Landen Company uses a single overhead rate of $100 per direct labor hour, the total amount allocated to the deluxe and basic chairs is given by the sum of the DLH used up for both products multiplied by the overhead rate:

$A =(20+35)*\ 100\\A=\ 5,500$

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