Gratis Company Ltd applies overhead based on direct labour cost in their printing department. At the beginning of the year, the company estimated that manufacturing overhead would be $550 000, direct labour hours would be 100 000 and direct labour cost would be $1 100 000 in the printing department. What is the printing department's predetermined overhead rate for the year?

A. $2.00 per direct labour hour
B. $0.50 per direct labour hour
C. $5.50 per direct labour hour
D. $0.18 per direct labour hour

Answer rating: 100% (QA)

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