managerial

Budgeted Overhead cost $1,000,000 $950,000 Machine hours 50,000 45,000 Direct labour hours 100,000 92,000 Overhead is applied on the basis of machine hours. a. Calculate the predetermined overhead rate. b. Determine the amount of overhead applied for the year. c. Explain how an activity-based costing system might differ in terms of calculating a predetermined overhead rate. BE5.2 (LO 1) Sassafras Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing syste costing system. Following are its results