Petraeus Fabrication Company Has Provided the Following Information for the Year

Petraeus Fabrication Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 268,000 \\\text { Manufacturing overhead costs allocated to production } & \$ 259,200 \\\text { Actual direct materials cost } & \$ 800,000 \\\text { Actual direct labor cost } & \$ 144,000 \\\text { Actual direct labor hours } & 3,200 \text { direct labor hours } \\\text { Actual machine hours } & 10,900 \text { machine hours }\end{array}$$
Based on the above information, what was Petraeus's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

A) $95 per direct labor hour
B) 180% of direct labor cost
C) $8.50 per machine hour
D) 12% of direct materials cost