Apple Valley Corporation uses a job cost system and has two productiondepartments, A and B. Budgeted manufacturing costs for the yearare:

Department A

Department B

Direct materials

$700,000

$100,000

Direct manufacturing labor

$200,000

$800,000

Manufacturing overhead

$500,000

$400,000

The actual material and labor costs charged to Job#432 were asfollows:

Total

Directmaterials:

$25,000

Directlabor:

Department A

$8,000

Department B

$12,000

$20,000

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For DepartmentA, the manufacturing overhead allocation rate is________.

A.

250.0%

B.

40.0%

C.

50.0%

D.

90.0%