31) The manager budgeted$225,000 in Administration Activity to be allocated on the basis of32,000 direct labor hours. Required: Compute the cost rate for Administration Activity.

A.$7.03, which means for every direct labor hour used by aproduct, the company allocates$7.03 to cover Administration costs.B.$0.14, which means for every direct labor hour used by aproduct, the company allocates$0.14 to cover Administration costs.C.$7.10, which means every direct labor hour used by a product costs the company$7.10 for Administration costs.D.$7.15, which means that each product is allocated$7.15 to cover Administration costs.E.$7.03, which means for every direct labor dollar used by aproduct, the company allocates$7.03 to cover Administration costs.