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Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following

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Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Actual direct labor hours Estimated direct labor hours Actual manufacturing overhead costs Estimated manufacturing overhead costs Actual direct labor cost Estimated direct labor cost 232,500 250,300 $363,500 $401,900 $465,800 $500,700 If Nadal Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be? O A. 78% OB. 86% OC. 80% OD. 73%

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