=+5-40 KK Proration of overhead (Z. Iqbal, adapted) OBJECTIVE 7 Zeniff Ltd uses a normal costing system with a single indirect cost pool and machine-hours as the cost-allocation base. The following data are for 2014:

Budgeted indirect costs $4 750 000 Overhead allocation base Machine-hours Budgeted machine-hours 80 000 Indirect costs incurred $4 900 000 Actual machine-hours 75 000 Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as follows:

Actual machine-hours 2014 end-of-year balance Cost of goods sold 60 000 $8 000 000 Finished goods control 11 000 1 250 000 Work-in-process control 4 000 750 000 Required 1 Calculate the budgeted manufacturing overhead rate for 2014.