Intelco, a professional services firm, has overhead costs of $500,000. It operates three divisions, and an accountants

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Intelco, a professional services firm, has overhead costs of $500,000. It operates three divisions, and an accountants estimate of the overhead allocation per division is 50% for Division 1, 30% for Division 2, and 20% for Division 3. The divisions respectively bill 4,000, 2,000, and 3,000 hours.

What is the overhead rate for Division 2?

a. $75

b. $56

c. $17

d. $63

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