Bella,IncManufactures Two Kinds of Bags-Totes and Satchels Calculate the Predetermined Overhead Allocation Rate

Multiple Choice

Bella,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $25,750.Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 44 \\\hline \text { Direct labor cost per unit } & \$ 52 & \$ 60 \\\hline \text { Number of units } & 520 & 370 \\\hline\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)

A) 95.23%
B) 52.29%
C) 86.21%
D) 1.49%