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Kirsten belleves her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive. During

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Kirsten belleves her company's overhead costs are driven (affected) by the number of direct labor hours because the production process is very labor intensive. During the period, the company produced 5,000 units of Product A requiring a total of 800 labor hours and 2,500 units of Product B requiring a total of 200 labor hours. What allocation rate should be used if the company incurs overhead costs of $20,000? Multiple Choice $20 per labor hour $2.67 per unit $25.00 per labor hour for Product A and $100 per labor hour for Product B None of these

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