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# Plantwide predetermined overhead rates using labor

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Direct material 2,500 pounds (.75 per pound)
Direct labor 300 hours (7.50 per hour)
Direct labor (est.) 300 hours (200 in molding and 100 in firing)
Machine hours (est.) 200 (50 in molding and 150 in firing)

factory rent \$3,000
factory utilities \$3,700
factory equipment depre \$3,000
sales commission \$2,500

Calculate a plantwide predetermined overhead rate using direct labor hours as the cost driver.
Calculate a plantwide predetermined overhead rate using machine hours as the cost driver.
Using the plantwide rate calculated on the basis of direct labor hours, how much overhead would be applied to a job requiring 25 direct labor hours?

Using the plantwide rate calculated on the basis of machine hours, how much overhead would be applied to a job requiring 5 machine hours?

Crystal is considering the use of department overhead rates. Assume that the cost driver for the molding department is machine hours.

How much overhead would be applied to a job using 10 direct labor hours and 3 machine hours in the molding department and 4 direct labor hours and 2 machine hours in the firing department?