Lass Company has decided to use a predetermined rate to assign factory overhead to production.

The following predictions have been made for 2014:

Total factory overhead costs

$150,000

Direct labor hours

40,000 hours

Direct labor costs

$200,000

Machine hours

60,000 hours

Required:

a. Compute the predetermined factory overhead rate under three different bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. (Be sure to show all work and label each answer clearly)