QUESTION 4 In establishing a facility cost pool, the following budgeted costs for the year were included; Utilities to Heat the Building $250,000 Janitorial Services and Supplies $ 50,000 Building Maintenance $100,000 The company decides to calculate the predetermined overhead rate using budgeted Direct Labor Hours of 20,000 hours for the year.

What is the predetermined overhead rate the company will use for this cost pool?

A. $20 per Direct Labor Hour B. $20 per machine hour C. $20 per square foot D. $200 per Direct Labor Hour