Felton Quality Productions Company Has Provided the Following Information for the Year

Multiple Choice

Felton Quality Productions Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 89,770 \\\text { Manufacturing overhead costs allocated to production } & \$ 95,200 \\\text { Actual direct materials cost } & \$ 224,000 \\\text { Actual direct labor cost } & \$ 93,750 \\\text { Actual direct labor hours } & 18,500 \text { direct labor hours } \\\text { Actual machine hours } & 56,000 \text { machine hours }\end{array}$$
Based on the above information, what was Felton's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

A) $1.70 per machine hour
B) 52% of direct labor cost
C) 180% of direct materials cost
D) $24.80 per direct labor hour