Bernard Company's budgeted manufacturing overhead is $ 2 comma 700 comma 000. Overhead is allocated on the basis of direct labor hours. The budgeted direct labor hours for the period are 60 comma 000. What is the manufacturing overhead rate? A. $ 4 B. $ 27 C. $ 49 D. $ 45

D. $ 45

Explanation:

According to data given in question:

Bernard Company's budgeted manufacturing overhead = $2,700,000

Direct labor hours for the period = 60,000 hours

As Overhead is allocated on the basis of direct labor hours.

Manufacturing overhead rate = $2,700,000 / 60,000 hours

Manufacturing overhead rate = $45 / hour

So the correct Answer is D. $ 45

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