Torello Corporation Manufactures Two Products: Product H95V and Product V93N

Multiple Choice

Torello Corporation manufactures two products: Product H95V and Product V93N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products H95V and V93N. What is the company's plantwide overhead rate?

A) $180.50 per direct labor-hour
B) $27.00 per direct labor-hour
C) $72.20 per direct labor-hour
D) $120.33 per direct labor-hour