Oscar Inc,a Manufacturer of Gift Articles,uses a Single Plantwide Rate to to Allocate

Multiple Choice

Oscar Inc.,a manufacturer of gift articles,uses a single plantwide rate to allocate indirect costs.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead cost for the year is $5,000,000.And estimated machine hours are 25,000.During the year,the actual machine hours used was 30,000.Calculate the predetermined overhead allocation rate.

A) $166
B) $250
C) $200
D) $150