Augsburg Manufacturing Company estimates direct labor costs and manufacturing overhead costs for the coming year to be SAR 800,000 and SAR 600,000, respectively. Augsburg allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 20,000 hours and 12,000 hours, respectively. Actual overhead for the year was SAR 580,000, while actual labor hours were 22,000 and actual machine hours were 13,000.What is the predetermined overhead allocation rate?

a. SAR 30 per labor hour

b. SAR 40 per labor hour

c. SAR 50 per machine hour

d. SAR 25 per machine hour

The following information relates to Bamberg Corporation (all amounts in SAR):

Direct Materials 845,000

Indirect Materials 37,000

Factory Rent 540,000

Direct Labor Wages 680,000

Indirect Labor Wages 60,000

Factory Clean Up Crew Wages 48,000

Manufacturing Equipment Depreciation 27,000

Delivery Vehicle Depreciation 42,000

Administrative and Sales Wages 860,000

Sales Revenue 2,750,000

Insurance on Factory 97,000

How much were Bamberg's manufacturingoverhead costs?

a. SAR 1,614,000

b. SAR 754,000

c. SAR 851,000

d. SAR 809,000

Note: kindly explain the steps of answers