Ichiro Companys manufacturing overhead budget shows total variable costs of $198,000 and total fixed costs of $162,000.

Question:

Ichiro Company’s manufacturing overhead budget shows total variable costs of $198,000 and total fixed costs of $162,000. Total production in units is expected to be 160,000. It takes 15 minutes to make one unit, and the direct labor rate is $15 per hour. Express the manufacturing overhead rate as
(a) A percentage of direct labor cost, and
(b) An amount per direct labor hour.