Petraeus Fabrication company has provided the following information for the year 2012:

actual manufacturing overhead costs incurred:$268000

manufacturing overhead costs allocated to production: $259200

actual direct materials cost: $800000

actual direct labor cost: $144000

actual direct labor hours: 3200 direct labor hours

actual machine hours: 10900 machine hours

based on the above information, what was Petraeus's allocation rate?(hint: for this type of problem the trial and error method may be used)

a) $95 per direct labor hour

b) $8.50 per machine hour

c) 12% of direct materials cost

d) 180% of direct labor cost

Answer rating: 100% (QA)

Solution is given below we know Petraeuss allocation rate is 259200 now checking each ... View the full answer