Northern Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs. At the beginning

of the year, the company expected to incur the following.

Depreciation on manufacturing plant and equipment $290,000$

Property taxes on plant $55\mathrm{.}000$

Sales salaries $12\mathrm{.}000$

Delivery drivers wages $8\mathrm{.}000$

Plant janitors' wages $40\mathrm{.}000$

Machine hours $20,500$ hours

Required:

Required:

Compute Northern's indirect cost allocation rate based on labour cost

Compute Northern's indirect cost allocation rate based on machine hours.

How much overhead was allocated during the year if the allocation base was machine hours?

How much manufacturing overhead was incurred during the year?