If the budgeted direct labor time for December is 8,000 hours, then average budgeted manufacturing overhead per direct labor-hour is closest to:

A) $14.38 per direct labor-hour
B) $9.38 per direct labor-hour
C) $12.50 per direct labor-hour
D) $16.25 per direct labor-hour

Manufacturing Overhead

All indirect costs associated with manufacturing, including utilities, rent, and salaries for indirect labor.

Direct Labor-hour

A measure of the work done by labor in producing goods, calculated as the total hours of direct labor expended on the production of goods.