Question - Riverview Company's budget for the coming year includes $7,200,000 for manufacturing overhead, 50,000 hours of direct labor, and 250,000 hours of machine time.
If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.30 labor hours to complete?
A. $14.40.
B. $43.00.
C. $28.80.
D. Some other amount.