Columbus Company provides the following ABC costing information:

Activities	Total Costs	Activityminuscost drivers
Labor	$368,000	8,000 hours
Gas	$72,000	6,000 gallons
Invoices	$130,000	6,500 invoices
Total costs	$570,000

The above activities used by their three departments are:

	Lawn Department	Bush Department	Plowing Department
Labor	2,600 hours	1,300 hours	4,100 hours
Gas	1,700 gallons	800 gallons	3,500 gallons
Invoices	1,100 invoices	300 invoices	5,100 invoices

If labor hours are used to allocate the

nonminuslabor,

overhead costs, what is the overhead allocation rate? (Round the final calculation to the nearest cent.)

Question content area bottom

Part 1

A.

$46.00 per hour

B.

$27.80 per hour

C.

$25.25 per hour

D.

$71.25 per hour