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What is the overhead application rate for packaging

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Question - Baker Co. has two departments (Processing and Packaging) and uses a job order costing system. Baker applies overhead in Processing based on machine hours and on direct labor cost in Packaging. The following information is available for July:

Processing Packaging

Machine hours 2500 1000

Direct labor cost $44500 $23000

Applied overhead $55000 $51750

Refer to Baker Co. What is the overhead application rate for Packaging?

A) $23.00

B) $51.75

C) $2.25

D) $0.44

Reference no: EM131772153

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