7.22The following annual data relate to Facsimile Printing Pty Ltd:

Budgeted machine hours

15 000

Budgeted direct labour hours

30 000

Budgeted direct labour cost

$420 000

Budgeted manufacturing overhead

$546 000

During the month of June the firm worked on three productsbusiness cards, wedding invitations and promotion flyersusing the following inputs:

Business cards

Wedding

Invitations

Promotion flyers

Actual machine hours

600

300

200

Actual direct labour hours

800

600

400

Actual manufacturing overhead costs for June were $51 000 and the actual direct labour rate was $22.50 per hour.

Required:

Assume that the firm uses machine hours as its overhead cost driver:

1.Calculate the firm's predetermined plantwide overhead rate.

2.Estimate the overhead costs of each of the three products.

Compare the actual overhead cost to the amount of overhead applied to the three products in June