Roget Factory Has Budgeted Factory Overhead for the Year at $15,500,000

Multiple Choice

Roget Factory has budgeted factory overhead for the year at $15,500,000. It plans to produce 2,000,000 units of product. Budgeted direct labor hours are 1,050,000, and budgeted machine hours are 750,000. Using a single plantwide factory overhead rate based on direct labor hours, the factory overhead rate for the year is

A) $14.76
B) $20.67
C) $7.75
D) $77.50