Gregory Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost Pool Overhead Costs Cost driver Activity level

Supervision of direct labor $326,000 Direct labor-hours 900,000

Machine maintenance $132,000 Machine-hours 960,000

Facility rent $217,000 Square feet of area 100,000

Total overhead costs $675,000

The accounting records show the Mossman Job consumed the following resources:

Cost driver Actual level

Direct labor-hours 200

Machine-hours 1,500

Square feet of area 70

If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Gregory?

Question 5 options:

	$0.80 per direct labor-hour
	$1.25 per direct labor-hour
	$0.75 per direct labor-hour
	$1.33 per direct labor-hour