Nadelson Incorporated Makes a Single Product--An Electrical Motor Used in Many

Multiple Choice

Nadelson Incorporated makes a single product--an electrical motor used in many long-haul trucks.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 variable component of the predetermined overhead rate is closest to:

A) $1.26 per labor-hour
B) $1.20 per labor-hour
C) $1.64 per labor-hour
D) $1.57 per labor-hour