Smith Foundry in Columbus, Ohio, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year,

the company expected to incur the following:

$($Click the icon to view the beginning of year estimated costs.$)$

At the end of the year, the company had actually incurred the following:

$($Click the icon to view the actual end of year costs.$)$

Read the equirements

Requirement $1.$ Compute Alton's predetermined manufacturing overhead rate

Determine the formula to calculate the predetermined overhead rate, then calculate the rate.

Predetermined overhead rate