Teecorp Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Labor $320,000 8,000 hours Gas $36,000 6,000 gallons Invoices $40,000 2,500 invoices Total costs $396,000 The above activities used by their three departments are: Lawn Department Bush Department Plowing Department Labor 2,500 hours 1,200 hours 4,300 hours Gas 1,700 gallons 800 gallons 3,500 gallons Invoices 1,600 invoices 400 invoices 500 invoices If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate?

Question 16 options:

	$49.50 per hour
	$9.50 per hour
	$24 per hour
	$4.60 per hour