Tungsten,Inc Calculate the Predetermined Overhead Allocation Rate

Multiple Choice

Tungsten,Inc.manufactures both normal and premium tube lights.The company allocates manufacturing overhead using a single plantwide rate with machine hours as the allocation base.Estimated overhead costs for the year are $106,000.Additional estimated information is given below. $$\begin{array} { | l | l | l | } \hline & { \text { Normal } } & \text { Premium } \\\hline \text { Machine hours (MHr) } & 30,000 & 34,000 \\\hline \text { Direct materials } & \$ 52,000 & \$ 400,000 \\\hline\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to the nearest cent.)

A) $3.53 per direct labor hour
B) $1.66 per machine hour
C) $3.12 per machine hour
D) $0.23 per direct labor hour