Lancelot Manufacturing is a small textile manufacturer using

machinehours

as the single

indirectcost

rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Case High School band jacket job.

	Company		Case High School Job
Direct materials	$47,000		$2,200
Direct labor	$25,000		$500
Manufacturing overhead costs	$36,000
Machinehours	90,000	mh	900	mh

For Lancelot Manufacturing, what is the annual manufacturing overhead costallocation rate?

A.$ 0.80

B.$ 0.40

C.$ 1.20

D.$ 40.00