Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours
It has provided the following information for the year:
Actual manufacturing overhead costs incurred $100,000
Manufacturing overhead costs allocated to production $56,000
Actual direct materials cost $220,000
Actual direct labor cost $40,000
Actual machine hours 32,000 hours
Based on the above information, calculate the predetermined overhead allocation rate applied by Felton Quality. (Round your answer to the nearest cent.)
A) $1.75 per machine hour
B) $3.13 per machine hour
C) $6.88 per machine hour
D) $1.25 per machine hour
A .
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