The M \& S Company uses normal costing. The following information pertains to a recent production period:

a. Determine the predetermined overhead rate if the company uses machine hours as the activity base.

b. Determine the predetermined overhead rate if the company uses direct labor hours as the activity base.

c. If machine hours is used as the activity base, how much manufacturing overhead would be applied for the period?

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Estimated manufacturing overhead $70,000 Actual manufacturing overhead $82,000 Machine hours 14,000 Actual machine hours 14,500 Estimated direct labor hours 2,000 Actual direct labor hours 2,300