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Montgomery, Inc. manufactures two models of its product: Basic and Deluxe. The firm allocates manufacturing overhead using a single plant-wide rate based on machine hours.

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Montgomery, Inc. manufactures two models of its product: Basic and Deluxe. The firm allocates manufacturing overhead using a single plant-wide rate based on machine hours. Estimated overhead costs for the year are $102,000. Additional estimated information includes: Basic Deluxe Machine hours 24,000 MH 39,000 MH Direct labor hours 51,000 DLH 480,000 DLH Calculate the predetermined overhead allocation rate. (Round your answer to the nearest cent.) A. $4.25 per DLH B. $0.19 per DLH OC. $2.62 per MH OD.$1.62 per MH

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