Crystal Fabrication allocates manufacturing overhead using a single predetermined rate based on a planned use of 10,000 direct labour hours per year. Company leadership recently learned that its costing system may be too simple for its operations, and that job costs may be fairly inaccurate. A consultant was hired to study overhead costs, and the following information reflects the cost pools and activity rates that were determined:

Based on the information presented in the introduction and table above, Crystal Fabrications single predetermined manufacturing overhead cost rate is:

a.$150/ direct labour hour b.$37.60/ direct labour hour c.$80/ direct labour hour d. $15/ direct labour hour

\begin{tabular}{c|c|c} Cost Pool & Total Cost & Activity Rate \\ \hline Purchasing & $96,000 & $48/ purchase order \\ \hline Setups & $50,000 & $80/ production run \\ \hline Assembly & $150,000 & $15/directlabourhour \\ \hline nspections & $80,000 & $20/ inspection \\ \hline Total & $376,000 & \end{tabular}