Salazar Enterprises' budget included the following estimated costs for the 2012 accounting period.

The company uses a predetermined overhead rate based on machine hours. It estimated machine hour usage for 2012 would be 30,000 hours.
Required
a. Identify the manufacturing overhead costs Salazar would use to calculate the predetermined overhead rate.
b. Calculate the predetermined overhead rate.
c. Explain why the rate is called "predetermined."
d. Assuming Salazar actually used 29,200 machine hours during 2012, determine the amount of manufacturing overhead it would have applied to Work in Process Inventory during the period.

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Depreciation on manufacturing equipment Cost of manufacturing supplies Direct labor cost Rent on manufacturing facility Direct materials cost Manufacturing utilities cost Maintenance cost for manufacturing facility Administrative salaries cost $17,200 3,000 86,400 7,600 74,000 6,000 5,200 30,500