E3-3A. Calculate and Use Overhead Rate During the coming accounting year, Baker Manufacturing, Inc.,

anticipates the following costs, expenses, and operating data, related to Job 63:

Direct material (16,000 lb.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 80,000

Direct labor (@ $10/hr.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .140,000

Indirect material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000

Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Sales commissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000

Factory administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000

Non factory administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Other manufacturing overhead*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000

a. Calculate the predetermined manufacturing overhead rate for the coming year for each of the fol-

lowing application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.

b. For each item in requirement a, determine the proper application of manufacturing overhead to

Job 63, to which 16 direct labor hours, $150 of direct labor cost, and 40 machine hours have been

charged