Pearl Inc. incurred overhead costs of $65,000 in May, 2014. The overhead applied on the basis of

Question:

Pearl Inc. incurred overhead costs of $65,000 in May, 2014. The overhead applied on the basis of direct labor hours for May was $90,000. The company worked for 500 hours in the month. What is the predetermined overhead rate per direct labor hour?
A. $130 per direct labor hour
B. $180 per direct labor hour
C. $1.38 per direct labor hour
D. $500 per direct labor hour