Marquis Company estimates that annual manufacturing overhead costs will be $836,

Question

Marquis Company estimates that annual manufacturing overhead costs will be $836,000. Estimated annual operating activity bases are direct labor cost $502,000, direct labor hours 48,800, and machine hours 107,800.

Compute the predetermined overhead rate for each activity base.

$

Overhead rate per direct labor cost (Round answers to 2 decimal places, e.g. 110.10%.)

% Overhead rate per direct labor hour (Round answers to 2 decimal places, e.g. $10.50.)

$

Overhead rate per machine hour (Round answers to 2 decimal places, e.g. $10.50.)

$

Explanation / Answer

Overhead rate per direct labor cost 836000/502000 1.67 per labour cost Overhead rate per direct labor hour 836000/48800 17.13 per hour Overhead rate per machine hour 836000/107800 7.76 per machine hour

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