Christmas Town INC. uses machine hours to calculate the single indirect cost rate to allocate manufacturing overhead costs to various jobs contracted throughout the holiday season. The following estimates are provided for the upcoming Christmas parade contract in Houston.

Christmas Town INC. Christmas Parade, Houston

Direct Materials $25,000 $600

Direct Manufacturing Labor $5,000 $150

Manufacturing Overhead Cost $30,000

Machine Hours 50,000 (mh) 800 (mh)

1. For Christmas Town INC, determine the annual manufacturing overhead cost allocation rate.

2. Determine the estimated total manufacturing costs for the Christmas parade job in Houston.

3. Determine the amount of manufacturing overhead costs allocated to the parade contract.