E7.21 Predetermined overhead rates for various cost drivers: manufacturer The following data relate to Denyer Ltd for the year just ended: LO7.3 7.7 Budgeted sales revenue Actual manufacturing overhead Budgeted machine hours Budgeted direct labour hours Budgeted direct labour rate Budgeted manufacturing overhead Actual machine hours Actual direct labour hours Actual direct labour rate $307 500 $510 000 15 000 30 000 $ 21 $546 000 16 500 27 000 $ 22.50 CHAPTER SEVEN A CLOSER LOOK AT OVERHEAD COSTS 331 Required: 1. Calculate the firm's predetermined and actual overhead rates for the year using each of the following cost drivers: (a) machine hours (b) direct labour hours (c) direct labour cost. 2. Would you recommend using an actual overhead rate or a predetermined overhead rate for Denyer Ltd? Synlain vaur