Bridge Building Company estimates that it will incur $1.200,000 in overhead costs for the year. Additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. What is the predetermined overhead rate for Bridge Building Company if direct labor costs are to be used as an allocation base? i. 50% of direct labor cost
ii. 2400% of direct labor cost
iii. 8.33% of direct labor cost
iv. 200% of direct labor cost