Manufacturing Overhead is allocated based on Direct Labour Hours After one year's operation, at the end of the financial period the following information was collected:

a.What was the predetermined manufacturing overhead rate calculated at the beginning of 2019?

b.What was the actual manufacturing overhead rate for 2019?

c.Give two reasons why there is a difference between the rates calculated in (a) and (b) above.

Riverside Furniture estimated the following activity at the beginning of 2019 Expected Production 10,000 units Expected Manufacturing Overhead $ 100,000 Expected Direct Labour Hours 10,000 Hours Manufacturing Overhead is allocated based on Direct Labour Hours After one year's operation, at the end of the financial period the following information was collected: Direct Labour Hours 9,000 Hours Manufacturing Overhead $ 120,000 Required a) What was the predetermined manufacturing overhead rate calculated at the beginning of 2019? b) What was the actual manufacturing overhead rate for 2019? c) Give two reasons why there is a difference between the rates calculated in (a) and (b) above