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The following information is available pertaining to the Production Division of Clarkson Enterprises: Assembly Dept. Finishing Dept. Total Overhead costs $7,500 $22,500 $30,000 Direct labor

The following information is available pertaining to the Production Division of Clarkson Enterprises:

Assembly Dept. Finishing Dept. Total
Overhead costs $7,500 $22,500 $30,000
Direct labor hours 7,500 2,500 10,000
Machine hours 2,500 7,500 10,000
Production information pertaining to Job 4X5:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $0 $1,250
Direct labor hours 250 0 250
Machine hours 0 0 0
Units produced 500 0 500

What is the plantwide overhead rate based on direct labor hours?

a.$3.00

b.$1.50

c.$9.00

d.$1.00

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