RegalUniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.

RegalUniforms

reports the following cost data for the past year:

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Read the

requirements

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.

Requirement 1. Compute the predetermined manufacturing overhead rate.

Enter the formula for the predetermined manufacturing overhead rate, then compute the rate.

Estimated yearly overhead costs

/

Estimated yearly machine hours

=

Predetermined overhead rate

69000

/

7,000

=

per machine hour

Budget

Actual

Direct labor hours. . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,000

hours

6,200

hours

Machine hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7,000

hours

6,600

hours

Depreciation on salespeople's autos. . . . . . . . . . . . .

$23,000

$23,000

Indirect materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$50,000

$54,500

Depreciation on trucks used to deliver uniforms

to customers. . . . . . . . . . . . . . . . . . . . . . . . . .

$15,500

$14,500

Depreciation on plant and equipment. . . . . . . . . . . . .

$67,000

$69,000

Indirect manufacturing labor. . . . . . . . . . . . . . . . . . . .

$41,000

$44,000

Customer service hotline. . . . . . . . . . . . . . . . . . . . . .

$19,000

$21,000

Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$45,000

$46,500

Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$69,000

$84,500