The Assembly Department's factory overhead rate is

A) $10.50 per direct labor hour
B) $19.50 per direct labor hour
C) $3.75 per machine hour
D) $4.38 per machine hour

Factory Overhead Rate

Factory overhead rate is the method of allocating indirect manufacturing costs, like utilities and rent, to individual units of production based on a specific allocation base.

Assembly Department

a division within a manufacturing plant where components are put together to create a final product.

Direct Labor Hour

The amount of time employees directly involved in manufacturing spend on producing a specific unit of output.