Calculate and Use Overhead Rate

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

Direct material (16,000 lb.)	$ 200,000
Direct labor (@ $20.00/hr.)	280,000
Indirect material	30,000
Indirect labor	55,000
Sales commissions	85,000
Factory administration	40,000
Non factory administrative expenses	50,000
Other manufacturing overhead*	120,000
*Provides for operating 70,000 machine 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 the nearest one decimal place percentage, when applicable (example: 76.4%).

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 63, to which 32 direct labor hours, $375 of direct labor cost, and 100 machine hours have been charged. Round answers to two decimal places, when applicable.

Application base	Overhead applied to Job 63
Direct labor hours	Answer
Direct labor costs	Answer
Machine hours	Answer