Fortify,Inc A) $2400
B) $15

Multiple Choice

Fortify,Inc.uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs.The following information has been collected for the previous year: Fortify used 25,000 direct labor hours and 50,000 machine hours during the previous year.What is the predetermined overhead rate per direct labor hour?
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 150,000 \\\hline \text { Direct labor } & 200,000 \\\hline \text { Sales commissions } & 100,000 \\\hline \text { Indirect labor } & 50,000 \\\hline \text { Rent on offic e equipment } & 25,000 \\\hline \text { Depreciation - factory building } & 75,000 \\\hline \text { Utilities - factory } & 125,000 \\\hline\end{array}$$

A) $24.00.
B) $15.00.
C) $14.00.
D) $10.00.