Villanova Company's manufacturing overhead budget shows total variable costs of ^1^8,000 and total Fixed costs of ($147,000).

Question:

Villanova Company's manufacturing overhead budget shows total variable costs of ^1^8,000 and total Fixed costs of $$147,000$. Total production in units is expected to be 160,000. It takes 15 minutes to make one unit, and the direct labor rate is $$15$ per hour. Express the manufacturing overhead rate as

(a) a percentage of direct labor cost, and

(b) an amount per direct labor hour.

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