Gallucci Incorporated Makes a Single Product--A Critical Part Used in Commercial

Multiple Choice

Gallucci Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The predetermined overhead rate is closest to:

A) $7.53 per labor-hour
B) $7.85 per labor-hour
C) $14.31 per labor-hour
D) $14.92 per labor-hour