The KnitWitt Corporation manufactures knitted shawls and scarves. The company expects to incur $1,500,000 in overhead costs during 2012. The following budget information is for 2012: If the company uses direct labor as the cost driver, what will be the allocation rate for 2012?

Shawls Scarves Total Number of units 50.000 100.000 150.000 expected to be produced Direct labor hours 250.000 800.000 1.050.000 Machine hours 100.000 80.000 180.000