If he was the first to say he wanted the product and the seller wants to sell it as fast as possible than yes. But not technically it would be a kind of verbal understanding and agreement.
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Answer:
$75
Explanation:
We know,
Manufacturing overhead rate = Budgeted manufacturing overhead ÷ Budgeted direct labor hours
Given,
Budgeted manufacturing overhead = $4,500,000
Budgeted direct labor hours = 60,000
Putting the values into the manufacturing rate formula, we can get,
Manufacturing overhead rate = $4,500,000 ÷ 60,000 hours
Manufacturing overhead rate = $75 per labor hour.
When the standard amount of factory cost is allocated to the production of every unit, it is called the overhead manufacturing rate.