The Heartmore Organization Uses a Single Cost Allocation Base

Multiple Choice

The Heartmore Organization uses a single cost allocation base.The management accountants group all budgeted indirect costs of $4,000,000 into a single overhead cost pool.They also reported a budget of 40,000 direct manufacturing labor-hours during the same period.
Required:
What is the rate per direct manufacturing labor-hour?

A) $50 per direct manufacturing labor-hour.
B) $75 per direct manufacturing labor-hour.
C) $100 per direct manufacturing labor-hour.
D) $125 per direct manufacturing labor-hour.
E) $150 per direct manufacturing labor-hour.