Answer:
$67.50 per hour
Explanation:
Setup Cost = $312,500
Transportation Cost = $10,000
Direct Labor cost $25,500
Modification of machine cost $12,000
Insurance of Factory Premises $28,000
Raw material Cost $118,250
Machine hours = 7,500 hours
labor hours = 3,500 hours
Total manufacturing Overheads = $506,250 / 7,500 = $67.5 per hours
