Answer:
overhead rate = $80 per machine hour
so correct option is (D) $80 per machine hour
Explanation:
given data
Product A produced = 3,000 units
Product A requiring total = 100 machine hours
Product B produced = 2,000 units
Product B requiring total = 25 machine hours
overhead costs = $10,000
to find out
allocation rate
solution
first we get here total machine hours required that is express as
total machine hours required = 100 hours + 25 hours
total machine hours required = 125 hours
and total overhead cost is = $10000
so here production system heavily automate
so that overhead allocation rate is base on machine hour
and overhead allocation rate will be as
overhead rate =
overhead rate = $80 per machine hour
so correct option is (D) $80 per machine hour