Coleridge Company Estimates That Its Production Workers Will Work 125,000

Multiple Choice

Coleridge Company estimates that its production workers will work 125,000 direct labor hours during the upcoming period and that overhead costs will amount to $750,000.Assume Overhead to be allocated on the basis of direct labor hours.What predetermined overhead rate would be used to apply overhead to production during the period?

A) $6.00 per direct labor hour
B) $0.67 per direct labor hour
C) $0.67 per unit
D) $6.00 per unit