QUESTION 1 10 points Sav Which of these statements is not true about overhead cost allocation: A. Managers can set an appropriate selling price without knowing product cost information OB. Managers would select machine usage as the cost driver for overhead costs in the Production Department if they believe that there is a direct relationship between the number of machine hours used and the amount of overhead costs incurred. OC. Firms calculate their predetermined overhead rates before the start of an accounting period OD. When a manufacturer changes from using a single plant-wide overhead allocation rate to multiple rates, the results may better reflect each product's consumption of overhead resources 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.) O A. $2.62 per MH B. $4.25 per DLH OC. $1.62 per MH OD.$0.19 per DLH