Milan Manufacturing Company Has Identified Three Cost Pools to Allocate

Multiple Choice

Milan Manufacturing Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

The accounting records show the Mossman Job consumed the following resources:

If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Milan?

A) $1.05 per direct labor-hour
B) $0.59 per direct labor-hour
C) $0.95 per direct labor-hour
D) $1.71 per direct labor-hour