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Facet Company has estimated Job 12 will require 200,000 Direct Labor Hours to complete. It has also estimated there will be $500,000 in Manufacturing Overhead

Facet Company has estimated Job 12 will require 200,000 Direct Labor Hours to complete. It has also estimated there will be $500,000 in Manufacturing Overhead Costs.

What is the pretermined overhard allocation rate?

a. $500,000 per DLH
b. $.40 per DLH
c. cannot be calculated with information given
d. $2.50 per DLH

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