Answer:
The correct answer is $28.
Explanation:
According to the scenario, the given data are as follows:
Estimated indirect cost = $170,000
Direct labor hours = 6,000 hours
Direct hour rate = $250
So, we can calculate the predetermined overhead allocation rate per direct labor hour by using following formula:
Predetermined Overhead allocation Rate per direct labor hour = Estimated Indirect cost / Total direct labor hour
= $170,000 / 6000 hours
= $28.33 per hour
= $28 per hour.
Hence, the predetermined overhead allocation rate per direct labor hour is $28.