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:

Estimated

Actual

Manufacturing overhead costs

$50,000

$54,000

Direct labour hours

20,000 hours

24,000 hours

Job #500was completed during the year and the following costs had been incurred on that job:

Direct materials:

$4,000

Direct labour:

$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 thetotal costfor job #500?

Please note, when responding to this question in the text box below, ensure youclearlydistinguish your answer between parts 1-3 by placing the # prior to entering your response (For example, "#1) $0.01// #2) $1"etc).

Short Answer