Cost Accounting Systems Predetermined Overhead Rates

XYZ Corp. applies overhead based on direct labor hours. Total estimated overhead for the upcoming year is $1,500,000. Total estimated labor hours is 200,000.

Part A What is the Predetermined Overhead Rate per direct labor hour for the upcoming year?

Part B XYZ Corp. builds 25 homes during the year. A total of 83,000 hours of direct labor are incurred. Raw materials totaled $5,250,000 and direct labor was $1,162,000. Calculate the total manufacturing costs incurred and the cost per home constructed. Show your calculations.