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Yonge Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated based on machine hours in the

Yonge Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated based on machine hours in the Machining Department and based on direct labor hours in the Assembly Department. At the beginning of 2020, the following estimates were provided for the coming year:

Machining

Assembly

Direct labor cost

$500,000

$900,000

Manufacturing overhead costs

$420,000

$240,000

Direct labor-hours

30,000

60,000

Machine-hours

80,000

20,000

For the Machining Department, what is the manufacturing overhead cost driver rate?

$4.20 per machine hour

$5.25 per machine hour

$4.00 per machine hour

$4.67 per machine hour

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