Ortiz Company’s manufacturing overhead budget shows total variable costs of $198,000 and total fixed costs of $162,000. Total production in units is expected to be 150,000. It takes 20 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.

AppendixLO1