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Riverview Company's budget for the coming year includes $7,200,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time. If Riverview
Riverview Company's budget for the coming year includes $7,200,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time.
If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.30 labor hours to complete?
A.$14.40.
B.$43.00.
C.$28.80.
D.Some other amount.
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