Question: Mega Manufacturing uses direct labor hours as its allocation base when applying overhead. Actual overhead cost was $750,000, actual Direct Labor cost was $240,000, and

Mega Manufacturing uses direct labor hours as its allocation base when applying overhead. Actual overhead cost was $750,000, actual Direct Labor cost was $240,000, and actual direct labor hours were 75,000. Estimated overhead for the period is $500,000, estimated direct labor cost is $650,000, and estimated direct labor hours are 50,000.

What is the estimated overhead allocation rate?

	A.	$13.00 per Direct Labour hour
	B.	$15.00 per Direct Labour Hour
	C.	$10 per Direct Labour Hour
	D.	$3.20 per Direct Labour Hour

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