Anton belives that her company's manufacturing overhead costs are driven (i.e. affected) by the number of machine hours because the production process is very machine intensive. Anton's company produces two products: product A and product B. The following table gives you the relevant data for the year:
Number of units of product A produced during the year						3,000
Number of units of product B produced during the year						2,000
Machine hours required for production of product A						200
Machine hours required for production of product B						50
Number of labor hours required for production of product A						400
Number of labor hours required for production of product B						50
Budgeted overhead costs for the year						$10,000
What should be the allocation rate of overhead costs, given the information in the problem?

A.

$40.00 per machine hour

B.

$2.00 per unit

C.

$2,000 per product A and $8,000 for product B

D.

$22.22 per unit

E.

$3.33 per unit of product A and $5.00 per unit for product B