Fortify, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year: Direct materials$150,000 Direct labor 200,000 Sales commissions 100,000 Indirect labor 50,000 Rent on office equipment 25,000 Depreciation - factory building 75,000 Utilities - factory 125,000 Fortify used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?
A. $10.00.
B. $14.00.
C. $24.00.
D. $15.00.
Answer: A
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