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Petraeus Fabrication Company Has Provided the Following Information for the Year

question 154

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Petraeus Fabrication Company has provided the following information for the year 2012:
 Actual manufacturing overhead costs incurred $268,000 Manufacturing overhead costs allocated to production $259,200 Actual direct materials cost $800,000 Actual direct labor cost $144,000 Actual direct labor hours 3,200 direct labor hours  Actual machine hours 10,900 machine hours \begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 268,000 \\\text { Manufacturing overhead costs allocated to production } & \$ 259,200 \\\text { Actual direct materials cost } & \$ 800,000 \\\text { Actual direct labor cost } & \$ 144,000 \\\text { Actual direct labor hours } & 3,200 \text { direct labor hours } \\\text { Actual machine hours } & 10,900 \text { machine hours }\end{array}
Based on the above information, what was Petraeus's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)


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