Biology Forums - Study Force

Camden Company gathered the following information for the year ended December 31:

Direct labour cost incurred for the year   $240,000
Manufacturing overhead costs   $180,000
Beginning finished goods inventory   $200,000
Work-in-process inventory, Dec. 31   $55,000
Finished goods inventory, Dec. 31   $67,500
Cost of goods sold   $141,000
Estimated direct labour hours    300,000

Clyde Company uses a job costing system. What is the indirect cost allocation rate for the year be using direct labour hours as the allocation base?
A) $1.11 per direct labour hour
B) $0.90 per direct labour hour
C) $1.20 per direct labour hour
D) $0.60 per direct labour hour
E) $0.47 per direct labour hour

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