Riverview Company's budget for the coming year includes $7,600,000 for manufacturing overhead, 40,000 hours of direct labor, and 280,000 hours of machine time.

rev: 02_01_2018_QC_CS-116434

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 0.7 machine hours and 0.70 labor hours to complete?

$7.00.

$72.00.

$133.00.

$27.00.