Midwest Corporation Has Provided the Following Data Concerning Manufacturing Overhead

Midwest Corporation has provided the following data concerning manufacturing overhead for 2020:
$\begin{array}{lrr} \text {Estimated manufacturing overhead for the year } &\$30,000\\ \text { Estimated direct labor hours for the year } &2,000\\\end{array}$

Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-102 were 1,200 and 1,000, respectively. The actual manufacturing overhead was $37,000.
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What is the predetermined manufacturing overhead rate per direct labor hour for the year?

A) $15.
B) $20.
C) $25.
D) $30.

Correct Answer:

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