Abbott Pools manufactures swimming pool equipment. Abbott estimates total manufacturing overtiead costs next year to be $1,200,000. Abbott also estimates it will use 40,000 direct labor hours and incur $800,000 of direct labor cost next year. In addition, the machines are expected to be run for 30,000 hours. Read the requirements. 1. Compute the predetermined manufacturing overhead rate for next year assuming that the company uses direct labor hours as its manufacturing overhead allocation base. Identify the formula and compute the predetermined manufacturing overhead rate for next year using direct labor hours as the manufacturing overhead allocation base Predetermined manufacturing Estimated manufacturing overhead costs + Estimated direct labor hours overhead rate S 1,200,000 S 30 per DL hour 40,000 2. Compute the predetermined manufacturing overhead rate for next year assuming that the company uses direct labor cost as its manufacturing overhead allocation base. Identify the formula and compute the predetermined manufacturing overhead rate for next year using direct labor cost as the manufacturing overhead allocation base. (Enter the rate as a whole percent.) Predetermined manufacturing overhead rate % of DL cost