Peoria Company
Peoria Company Has Two Departments (Processing and Packaging)and

Peoria Company
Peoria Company has two departments (Processing and Packaging) and uses a job-order costing system.Peoria applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for August:
$\begin{array}{llc}\text { Machine hours } & \frac{\text { Processing }}{3,600} & \frac{\text { Packagin }}{1,500} \\\text { Directlabor cost } & \$ 47,600 & \$ 24,000 \\\text { Applied overhead } & \$ 60,500 & \$ 54,750\end{array}$


Refer to Peoria Company What is the overhead application rate for Packaging?

A) $ 0.44
B) $ 2.28
C) $16.00
D) $36.50