Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Mossman Job consumed the following resources:

If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Gregory Enterprises?
a. $0.50 per direct labor-hour
b. $0.80 per direct labor-hour
c. $0.40 per direct labor-hour
d. $1.20 per direct labor-hour

Overhead Activity level Cost Pool Costs Cost driver Supervision of direct labor Direct labor- $320,000 hours 800,000 Machine maintenance $120,000 Machine-hours 960,000 Square feet of Facility rent $200,000 100,000 area Total overhead costs $640,000 Cost driver Actual level Direct labor-hours 200 Machine-hours 1,600 Square feet of area 50