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Sunland Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $723000. Based on the 2020 results, and projected production for 2021, management prepared the
Sunland Company manufactures custom-order furniture. During 2020, actual manufacturing overhead totaled $723000. Based on the 2020 results, and projected production for 2021, management prepared the 2021 budget and estimated that manufacturing overhead would total $909000. The estimated number of direct labor hours for 2021 is 50500, and the estimated amount of direct labor cost is $980000. The company plans to use direct labor hours as the basis to allocate overhead to jobs. During May and June 2021, employees worked on the following four jobs: Monthly data Job X43 Job X87 Job Z22 Job A33 May Direct materials $86400 $71500 $43000 $37000 Direct labor cost $101700 $91000 $78500 $51000 Direct labor hours 5110 4530 4000 2560 June Direct materials $23700 $40500 $35900 $24600 Direct labor cost $28200 $51200 $62700 $33000 Direct labor hours 1500 2700 3200 1700 What is the predetermined overhead rate that Sunland will use to allocate overhead during 2021
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