Gallucci Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The predetermined overhead rate is closest to:

A) $7.53 per labor-hour
B) $7.85 per labor-hour
C) $14.31 per labor-hour
D) $14.92 per labor-hour

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a related activity.

Electrical Motor

A device that converts electrical energy into mechanical energy, commonly used in a wide range of applications from household appliances to industrial machinery.

Standard Labor-Hours

The estimated time that should be required to complete a single unit of production, serving as a benchmark for performance and cost control.