Fortify, Inc Fortify Used 25,000 Direct Labor Hours and 50,000 Machine Hours

Multiple Choice

Fortify, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:
$$\begin{array} { l r } \text { Direct materials } & \$ 150,000 \\\text { Direct labor } & 200,000 \\\text { Sales commissions } & 100,000 \\\text { Indirect labor } & 50,000 \\\text { Rent on office equipment } & 25,000 \\\text { Depreciation - factory building } & 75,000 \\\text { Utilities - factory } & 125,000\end{array}$$
Fortify used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?

A) $24.00.
B) $15.00.
C) $14.00.
D) $10.00.