Calculating applied overhead Goldstein Enterprises’ budget included the following estimated costs for the 2007 accounting period.

The company uses a predetermined overhead rate based on machine hours. It estimated machine hour usage for 2007 would be 30,000 hours.
Required

a. Identify the manufacturing overhead costs Goldstein would use to calculate the predetermined overhead rate.

b. Calculate the predetermined overhead rate.

c. Explain why the rate is called “predetermined.”

d. Assuming Goldstein actually used 29,200 machine hours during 2007, determine the amount of manufacturing overhead it would have applied to Work in Process Inventory during the period.