Fourth Company provides you with the following estimated data for the next period for preparing factory overhead application rates:

Required:
Because the company is undecided about which basis to use, management asks that you prepare the overhead rate based on the following:

a. Machine-hours.
Direct materials cost.
Units of production.
Direct labor costs or dollars.
&s aDiAre5ct labor-hours.

Transcribed Image Text:

Estimated total factory overhead Estimated machine-hours for period Estimated material costs for period.. Estimated number of units to be produced in the period Estimated direct labor costs for period. Estimated direct labor-hours for period... $525,000 375,000 hours $700,000 140,000 $500,000 125,000 hours