Answer the Following Questions Using the Information Below:
Gregory Company

Multiple Choice

Answer the following questions using the information below:
Gregory Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
$$\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Costdriver } & \text { Activity level } \\\text { Supervision of direct labor } & \$ 326,000 & \text { Direct labor-hours } & 900,000 \\\text { Machine maintenance } & \$ 132,000 & \text { Machine-hours } & 960,000 \\\text { Facility rent } & \$ 217,000 & \text { Square feet of area } & 100,000 \\\text { Total overhead costs } & \$ 675,000 & &\end{array}$$ The accounting records show the Mossman Job consumed the following resources:
$$\begin{array}{ll}\text { Cost driver } & \text { Actual level } \\\text { Direct labor-hours } & 200 \\\text { Machine-hours } & 1,500 \\\text { Square feet of area } & 70\end{array}$$
-If direct labor-hours are considered the only overhead cost driver,what is the single cost driver rate for Gregory?

A) $1.33 per direct labor-hour
B) $0.80 per direct labor-hour
C) $0.75 per direct labor-hour
D) $1.25 per direct labor-hour