7.15 Job costing; determination of manufacturing overhead rates Sheldon Manufacturing estimates the following activity for 2016: LO3 Expected production 10 000 units Expected direct labour hours 10000 hours Expected manufacturing overhead $ 100 000 Manufacturing overhead is allocated on the basis of direct labour hours. At the end of the financial period the following information was collected: Direct labour hours Manufacturing overhead 9000 hours $120000 Required (a) What was the predetermined manufacturing overhead rate calculated at the beginning of 2016? (b) What was the actual manufacturing overhead rate for 2016? (c) Explain the difference between the rates calculated in (a) and (b) above