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Patie Company uses a standard FIFO, process-cost system to account for its only product, Mituea. Patie has found that direct machine hours (DMH) provide the best estimate of the application of O/H. Four (4) standard direct machine hours are allowed for each unit. Using simple linear regression analysis in the form y = a + b(DMH), given that (a) equals fixed costs and (b) equals variable costs, Patie has developed the following O/H budget for a normal activity level of 100,000 direct machine hours:  What is the standard O/H rate?A. $13.00 per DMH. B. $1.32 per DMH C. $14.32 per DMH. D. $13.76 per DMH. |