Southron Inc. makes electrical

appliances such as toasters, irons

and dustbusters. The flexible

$($variable$)$ cost per unit is $$15.$ Fixed

cost is $$250,000$ per month. The

appliances are sold to retailers for

$$25$ each, on average. Fixed costs

are allocated to products on the

basis of direct labour hours, and the

budget for January is that $10,000$

direct labour hours will be worked.

The budgeted overhead recovery

rate for January is

a$)$ $$10\mathrm{.}00$ per direct labour hour

b$)$ $$25\mathrm{.}00$ per direct labour hour

c$)$ $$2\mathrm{.}50$ per direct labour hour

d$)$ $$10,00$ per unit produced

e$)$ none of the above