Little League, Inc. makes two kinds of baseball gloves - the Beginner and the Pro.Below is some relevant information for the past year (unit means one baseball glove):

BeginnerProNumber of units sold65,00010,000Sales price per unit$65$100Direct materials per unit$10$20Direct labor dollars per unit$30$45Cutting machine-hours per unit0.501.00Direct labor-hours per unit2.003.00

Little League is considering the use of activity-based costing, although it currently uses traditional (simple) costing, (meaning it uses just one pool of overhead costs and one allocation base).Little League is doing some analysis at year-end to see which costing method is best.Little League incurred total overhead costs for the year of $615,000, with direct labor-hours as the only allocation base.

Using traditional costing, the indirect cost rate is ____per direct labor-hour.

a.$8.20

b.$1.64

c.$5.00

d.$3.84

1 points