Calculate and Use Manufacturing Overhead Rate

During the coming accounting year, Ester Manufacturing, Inc., anticipates the following costs, expenses, and operating data:

Direct material (15,000 lb.)	$ 45,000
Direct labor (@ $12/hr.)	120,000
Indirect material	7,000
Indirect labor	12,000
Sales commissions	18,000
Factory administration	13,000
Non factory administrative expenses	14,000
Other manufacturing overhead*	28,000
*Machine hours are 30,000 hours.

a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.

Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor costs to two decimal places, when applicable (example: 76.25%).

Application base	Manufacturing overhead rate
Direct labor hours	Answer
Direct labor costs	Answer
Machine hours	Answer

b. For each item in requirement a, determine the proper application of manufacturing overhead to Job 128, to which 9 direct labor hours, $100 of direct labor cost, and 32 machine hours have been charged. Round answers to two decimal places, when applicable.

Application base	Overhead applied to Job 128
Direct labor hours	Answer
Direct labor costs	Answer
Machine hours	Answer