Spice Simmers Provided the Following Information from Its Accounting Records

Multiple Choice

Spice Simmers provided the following information from its accounting records for 2020: $\begin{array}{ll} \text { Expected production } & \text { 30,000 labour hours }\\ \text {Actual production } & \text { 28,000 labour hours}\\ \text {Budgeted overhead } &\$1,500,000\\ \text { Actual overhead } &\$1,450,000\\\end{array}$

How much is the overhead application rate if Spice Simmers bases the rate on direct labour hours?

A) $51.79 per direct labour hour
B) $48.33 per direct labour hour
C) $50 per direct labour hour
D) $46.67 per direct labour hour