Compute the amount of annual wages allocated to the departments, based on the number of hours worked.

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Chapter 24, Problem 4E

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Compute the amount of annual wages allocated to the departments, based on the number of hours worked.

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Clayton Textiles' estimated amounts for next year are as follows: • Department 1: Manufacturing overhead costs = $80,000 Direct labor hours 180,000 DLH . ⚫ Department 2: ⚫ Manufacturing overhead costs = $110,000 Direct labor hours = 230,000 DLH What is the company's plantwide overhead rate if direct labor hours are the allocation base?

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