Rhett Company has two departments, Machining and Assembly. The following estimates are for the coming year:

	Machining	Assembly
Direct manufacturing labor-hours	10,000	50,000
Machine-hours	40,000	20,000
Manufacturing overhead	$200,000	$400,000

A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is:

a. $ 8 per direct labor-hour

b. $10 per direct labor-hour

c. $20 per direct labor-hour

d. None of these answers is correct.

Can you please explain your answer?

Thank you,