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Required Information

Exercise $9\mathrm{.}36$ and $9\mathrm{.}37($Algo$)$

Heldelberg Fabrication manufactures two products, G$-09$ and G$-35$:

Production at the plant is automated and any labor cost is Included in overhead. Data on manufacturing overhead at the

plant follow:

Machine depreciation

Setup labor

Materials handling

Total

Exercise $9-36($Algo$)$ Activity$-$Based Costing and Cost Driver Rates $($LO $9-4)$

Required:

a$.$ Heldelberg currently applies overhead on the basis of machine$-$hours. What is the predetermined overhead rate for the quarter?

Note: Round your answer to $2$ decimal places.

b$.$ Heldelberg is thinking of adopting an ABC system. They have tentatlvely chosen the following cost drivers: machine$-$hours for

machine depreclation, production runs for setup labor, and direct materlal dollars for materlals handling. Compute the cost driver

rates for the proposed system at Heldelberg.