Aaron Company Estimates Direct Labour Costs and Manufacturing Overhead Costs

Aaron Company estimates direct labour costs and manufacturing overhead costs for the coming year to be $780,000 and $500,000,respectively.Aaron allocates overhead costs based on machine hours.The estimated total labour hours and machine hours for the coming year are 10,000 hours and 8000 hours,respectively.What is the predetermined overhead allocation rate?

A) $112.50 per labour hour
B) $97.50 per machine hour
C) $50.00 per labour hour
D) $62.50 per machine hour