Direct Direct Direct

Materials Labor Cost Labor Hours

Job 200 $ 500 $800 40

Job 201 350 200 10

Job 202 1,000 600 30

Franks Fabricating uses job costing and applies overhead using a normal costing system and uses direct labor cost as the allocation base. This periods estimated overhead cost is $100,000 and estimated direct labor cost of $50,000 and 2,500 direct labor hours.

What is the overhead allocation rate?

200%

60%

50%

30%

none of the above