Calculate the predetermined manufacturing overhead rate

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Question - Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.

Direct material (16,000 lb.) $80,000

Direct labor (@ $10/hr.) 200,000

Indirect material 12,000

Indirect labor 22,000

Sales commissions 34,000

Factory administration 16,000

Non factory administrative expenses 20,000

Other manufacturing overhead* 80,000

*Provides for operating 40,000 machine hours.

Reference no: EM132922444

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