Assume ABC Company has a cost pool that varies with the number of machine hours used in production and another that varies with the number of production runs during the period. They must estimate the machine-related costs and the number of machine hours they will use in the coming period. And, they must estimate the production run costs and how many production runs will be required for the coming period. Lets assume that machine-related costs are estimated to be $500,000 and machine hours are estimated at 50,000 and that production run costs are estimated to be $400,000 and that 400 production runs will be required.

What are the predetermined overhead rates?

How much overhead would be applied to work-in-process each week?