Calculate and Use Overhead gate
During the coming accounting year, Baker Manufacturing, Inc., anticipates the following cost, expenses, and operating data:
Direct material (16,000lb. $160,000
Direct labor (@$17.50/hr.) 245,000
Indirect material 24,000
Indirect labor 44000
Sales commissions 68,000
Factory administration 32,000
Non factory administrative expenses 40,000
Other manufacturing overheads* 96,000
*Provides for operating 61,250 machine hours.
a. Calculate Me predetermined manufacturing overhead rate for the corning year for each of Me following application bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours.
Round direct labor hours and machine hours answers to two decimal places, when applicable. Round direct labor cos. to the nearest one decimal place percentage, when applicable (example: 76.496).