Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .The following data were taken from the records of Big Sky Ltd., a manufacturing company.The company has been calculating the actual indirect cost allocation rate using direct labour hours as the allocation base.
-Normandeau Company's actual indirect cost pool amounted to $1,400,000 and the direct labour pool was $5,400,000.Overhead is allocated on the basis of direct labour hours.Actual and budgeted direct labour hours were 25,000 and 30,000 for the period.What is the manufacturing overhead cost allocation rate using actual direct labour hours as the cost allocation base?

A) $46.67
B) $272.00
C) $75.00
D) $226.67
E) $56.00