Archangel Manufacturing calculated a predetermined overhead allocation rate at the beginning of the year based on a percentage of direct labor costs

The production details for the year are given below:

Total manufacturing overhead costs estimated at the beginning of the year $140,000
Total direct labor costs estimated at the beginning of the year $330,000
Total direct labor hours estimated at the beginning of the year 11,000 direct labor hours
Actual manufacturing overhead costs for the year $150,000
Actual direct labor costs for the year $360,000
Actual direct labor hours for the year 11,600 direct labor hours

Calculate the manufacturing overhead allocation rate for the year based on the above data. (Round your final answer to two decimal places.)
A) 42.42%
B) 257.14%
C) 235.71%
D) 1,206.90%

A .

Business

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