Answer:
$8.34 per direct labor cost
Explanation:
The computation of the overhead rate is shown below:
= Factory overhead ÷ Direct labor cost
where,
Factory overhead = Factory supplies + Factory supervision + Factory rent + Factory insurance
= $21,900 + $29,200 + $45,700 + $63,400
= $160,200
And, the direct labor cost is $19,200
So, the overhead rate is
= $160,200 ÷ $19,200
= $8.34 per direct labor cost
