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

Charleston Company
Charleston Company has two departments (Processing and Packaging) and uses a job-order costing system.Charleston applies overhead in Processing based on machine hours and on direct labor cost in Packaging.The following information is available for July:
$\begin{array}{llc}\text { Machine hours } & \frac{\text { Processing }}{2,500} & \frac{\text { Packagin }}{1,000} \\\text { Directlabor cost } & \$ 44,500 & \$ 23,000 \\\text { Applied overhead } & \$ 55,000 & \$ 51,750\end{array}$

Refer to Charleston Company.What is the overhead application rate per machine hour for Processing?

A) $ 0.81
B) $ 1.24
C) $17.80
D) $22.00