Knowledge Check $01$

Machining Assembly

Direct labor hours $16,00012,000$

Direct labor cost $ $20,000$ $ $15,000$

Machine hours $5,0001,000$

Overhead $ $25,000$ $ $30,000$

Assuming that overhead in the machining department is allocated on the basis of machine hours, the departmental overhead rate per unit of the allocation base in the Machining Department is:

multiple choice

$$15$

$$5$

$$1\mathrm{.}56$

$$30$