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Question 38

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[The following information applies to the questions displayed below.]
Riverview Company's budget for the coming year includes $6,000,000 for manufacturing overhead,50,000 hours of direct labor,and 250,000 hours of machine time.
-If Riverview applies overhead using a predetermined rate based on labor-hours,what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?


A) $16.00
B) $30.00
C) $20.00
D) $60.00

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