Teecorp Company provides the following ABC costing information: The above activities used by their three departments are: If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate?

QUESTION 6 Teecorp Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Labor $450,000 10,000 hours Gas $40,000 5000 gallons Invoices $40,000 2500 invoices Total costs $530,000 The above activities used by their three departments are: Lawn Department Bush Department Plowing Department Labor 2700 hours 1500 hours 5800 hours Gas 1700 gallons 900 gallons 2400 gallons Invoices 1400 invoices 100 invoices 1000 invoices If labor hours are used to allocate the non-labor, overhead costs, what is the overhead allocation rate? $53.00 per hour $8.00 per hour $30.29 per hour $45.00 per hour