Exercise 7-35 Predetermined Overhead Rates: Ethical Iss Marine Components produces parts for airplanes and ships. The parts are produ equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2 the work done for client 2 will all be done under cost-plus contracts. Manufacturing overhead for year 2 is estimated to be $10 million. Other budgeted ent 2,000 en Machine-hours (thousands) Direct labor cost ($000) 2,000 2,500 7,500 Required: a. Compute the predetermined rate assuming that Marine Components uses mac 2.500 001 per machine hour rate - b. Compute the predetermined rate assuming that Marine Components uses dire n rate| | % of direct labor cost References eBook & Resources Worksheet Difficulty: 2 Medium Exercise 7-35 Predetermined Overhead Rates: Ethical Issues Learming Objective: 07-03 Aocount Exercise 7-35 Predetermined Overhead Rates: Ethical Iss Marine Components produces parts for airplanes and ships. The parts are produ equal to recorded cost plus a fixed fee (cost plus). For the upcoming year (year 2 the work done for client 2 will all be done under cost-plus contracts. Manufacturing overhead for year 2 is estimated to be $10 million. Other budgeted ent 2,000 en Machine-hours (thousands) Direct labor cost ($000) 2,000 2,500 7,500 Required: a. Compute the predetermined rate assuming that Marine Components uses mac 2.500 001 per machine hour rate - b. Compute the predetermined rate assuming that Marine Components uses dire n rate| | % of direct labor cost References eBook & Resources Worksheet Difficulty: 2 Medium Exercise 7-35 Predetermined Overhead Rates: Ethical Issues Learming Objective: 07-03 Aocount