Pembina Company estimated the following annual hours and costs:

Expected annual direct labor hours		40,000
Expected annual direct labor cost		$625,000
Expected machine hours		25,000
Expected material cost for the year		$500,000
Expected manufacturing overhead		$1,000,000

(a)

	Your answer is correct.

Calculate predetermined overhead allocation rates using each of the four possible allocation bases provided. (Round direct labor cost and direct material cost answers to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)

		Direct labor hours		Direct labor cost		Machine hours		Direct material cost
Predetermined overhead allocation		$		$		$		$

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(b)

Determine the cost of the following job (number 253) using each of the four overhead allocation rates: (Round answers to 0 decimal places, e.g. 125.)

Job 253
Direct materials		$3,500
Direct labor (150 hrs @ $15/hr)		$2,250
Machine hours used		150

		Direct labor hours		Direct labor cost		Machine hours		Direct material cost
Cost of Job No. 253		$		$		$		$