Question 7

Marquis Company estimates that annual manufacturing overhead costs will be $800,000. Estimated annual operating activity bases are as follows: direct labour cost $500,000, direct labour hours 50,000, and machine hours 100,000. Compute the predetermined overhead rates for each activity base. a) The pre-determined overhead rate using Direct Labour Cost as the activity is ______ % b) The pre-determined overhead rate using Direct Labour Hours as the activity is $ _______ per direct labour hours. c) The pre-determined overhead rate using Machine Hours as the activity is $ _______ per machine hour.