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Computer, Inc. manufactures bedside data-entry terminals for use in hospitals. In 2013, the company used...

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Accounting

Computer, Inc. manufactures bedside data-entry terminals for use in hospitals. In 2013, the company used 250,000 direct labor hours for a total cost of $12,000,000 and 500,000 machine hours to produce 500 terminals. The company uses machine hours to attach overhead to each terminal. If overhead amounted to $10,000,000 in 2013, what was the overhead rate per machine hour?

Select one: a. $20 b. $40 c. $20,000 d. Cannot be determined with the information provided.

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