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1.Predetermined Over Head Rate: $1,100,000 / 8000 = $137.50 per machine hour 2. Overhead Allocation: 6000 x $137.50 = $825,000 (Large) 2000 x $137.50 =

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1.Predetermined Over Head Rate: $1,100,000 / 8000 = $137.50 per machine hour 2. Overhead Allocation: 6000 x $137.50 = $825,000 (Large) 2000 x $137.50 = $275,000 (Small) Overhead Cost per Unit $875,000 / 20,000 = $43.75 (Large) $275,000 / 180,000 = $1.53 (Small)

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