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Cat Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours.

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Cat Company uses a job order cost system and applies manufacturing overhead costs to jobs using a predetermined overhead rate based on direct labour-hours. The following data were extracted from the company's accounting records for Year 10: Manufacturing overhead costs Estimated $50,000 Actual $54,000 20,000 hours 24,000 hours Direct labour hours Job #500 was completed during the year and the following costs had been incurred on that job: Direct materials: Direct labour $4,000 $1.500 (at $5.00 per direct labour hour) Required: 1. What is the predetermined overhead rate for Cat Company? 2. How much overhead would be applied to Job#500? 3. Suppose Job #500 contained 100 units. What would be the total cost for job #500?

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