Waldman Pools manufactures swimming pool equipment. Waldman estimates total manufacturing overhead costs next year to be $1,500,000. Waldman also estimates it will use 62,500 direct labor hours and incur $1,250,000 of direct labor cost next year. In addition, the machines are expected to be run for 50,000 hours. Compute the predetermined manufacturing overhead rate for next year under the following independent situations:
1. Assume that Waldman uses direct labor hours as its manufacturing overhead allocation base.
2. Assume that Waldman uses direct labor cost as its manufacturing overhead allocation base.
3. Assume that Waldman uses machine hours as its manufacturing overhead allocation base.