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Benjamin Company has two departments: Machining and Assembly. The following estimates are for the coming year: Machining Assembly Direct labor hours 30,000 40,000 Machine hours

Benjamin Company has two departments: Machining and Assembly. The following estimates are for the coming year:

Machining

Assembly

Direct labor hours

30,000

40,000

Machine hours

150,000

200,000

Manufacturing overhead costs

$600,000

$800,000

A single predetermined manufacturing cost driver rate based on total plant direct labor hours is:

$4 per direct labor hour.

$10 per direct labor hour.

$20 per direct labor hour.

$40 per direct labor hour.

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