Citra Tailors provides services of making bajukurung at Bandar Cahaya. It uses a job order costing system. The overhead absorbed is based on direct labour hour. The budgeted manufacturing overhead for the year 2018 is RM69,000. Management expects a total of 13,800 direct labour hours will be used.

a)Why companies use budgeted overhead costs rather than actual costs to compute predetermined overhead rate.

b)Calculate the predetermined overhead rate for Citra Tailors for the month of April 2018.