The Predetermined Overhead Rate for Manufacturing Overhead for Ashland Corporation

Multiple Choice

The predetermined overhead rate for manufacturing overhead for Ashland Corporation was $8.00 per direct labor hour. The estimated labor rate was $10.00 per hour. If the estimated direct labor cost was $150,000, what was the estimated manufacturing overhead?

A) $93,750.
B) $75,000.
C) $120,000.
D) $15,000.