Riverview Company's budget for the coming year includes $7,400,000 for manufacturing overhead, 50,000 hours of direct labor, and 200,000 hours of machine time.

If Riverview applies overhead using a predetermined rate based on labor-hours, what amount of overhead will be assigned to a unit of output which requires 0.6 machine hours and 0.60 labor hours to complete?

Multiple Choice

• $4.00

• $88.80

• $37.00

• $59.00