Superior Services,Inc

Multiple Choice

Superior Services,Inc.is a consulting firm that offers optimal legal solutions.It allocates indirect costs using a single predetermined overhead allocation rate with direct labor hours as the allocation base.The estimated indirect costs for this year amount to $160,000.The company is expected to work 8000 direct labor hours during the year.The direct labor rate is $300 per hour.Clients are billed at 120% of direct labor cost.Last month,Superior's consultants spent 180 hours on Xyme,Inc.What is the predetermined overhead allocation rate per direct labor hour? (Round your final answer to the nearest whole dollar.)

A) $533 per hour
B) $20 per hour
C) $889 per hour
D) $27 per hour