You Got This! estimates the company will incur 150,000 in total direct labor hours and $375,000 in factory overhead for the period ending December 31, 2019. If the company uses direct labor hours as the allocation activity base, what will the factory overhead allocation rate be for the period ending December 31, 2019? What would the factory overhead allocation rate be for period ending December 31, 2020, if the company estimates direct labor will stay the same while the factory overhead rate increases to $450,000.

(2 points)

Factory overhead allocation rate for Period Ending 2019

Factory overhead allocation rate for Period Ending 2020