Answer:
$10.00 per hour
Step-by-step explanation:
Overhead application rate which is also known as overhead absorption rate on the basis on labor hours is the total budgeted overhead for 2019 which is $900,000 divided by the expected production of 90,000 labor hours for the year.
overhead application rate=$900,000/90,000=$10 per hour
This implies that for every one hour worked overhead cost of $10 would be added to the other costs incurred.
The correct option then is the third option of $10.00 per hour
