Using the information above calculate the single predetermined overhead rate this company is using based on machine hours as the cost driver. Predtermined overhead rate: XYZ company manufactures chemicals used in radiological imaging systems. The company had originally used machine hours as the cost driver to develop one predetermined overhead rate.

You have been recently hired by this company to review the costing of chemicals and realize that maybe a predetermined overhead rate does not give an accurate cost picture.

You remember discussing overhead cost issues in MBA$641$ and want to implement ABC, so you have done some research and come up with the following activity cost pools and cost drivers.