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Rebhi Company has two departments, Machining and Assembly. The estimates for the coming year: Machining:...

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Accounting

Rebhi Company has two departments, Machining and Assembly. The estimates for the coming year: Machining: 10,000 Direct manufacturing labor-hours, 40,000 Machine-hours and $200,000 Manufacturing overhead costs. Assembly: 50,000 Direct manufacturing labor-hours, 20,000 Machine-hours and $400,000 Manufacturing overhead costs. A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is:

a.

$10 per direct labor-hour

b.

$20 per direct labor-hour

c.

$8 per direct labor-hour

d.

$15 per direct labor-hour

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