QUESTION 7

1. Courtney Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 2019 is as follows:

   	Estimated	Actual
   Manufacturing overhead	$175,000	$165,000
   Direct labour hours	50,000	60,000

   The estimated overhead allocation rate for 2019 was:

   	A.	$2.75 per Direct Labor hour
   	B.	$3.33 per Direct Labor hour
   	C.	$3.50 per Direct Labor hour
   	D.	$2.92 per Direct Labor hour