Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours

It has provided the following information for the year:

Manufacturing overhead costs allocated to production $189,000
Actual direct materials cost $540,000
Actual direct labor cost $2,450,000
Actual direct labor hours 9,400 direct labor hours
Estimated machine hours 180,000 machine hours

Based on the above information, calculate Q-dot's predetermined overhead allocation rate. (Round your answer to two decimal places.)
A) $1.05 per machine hour
B) 7.71% of direct labor cost
C) 35.00% of direct materials cost
D) $20.11 per direct labor hour

D .

Business

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