Answer:
See solution below
Explanation:
• Predetermined overhead rate for Department D
= Estimated Manufacturing overhead / Estimated Direct labor cost
Manufacturing overhead = 990,000
Direct labor cost = 1,237,500
= (990,000/1,237,500) × 100
= 0.8 × 100
= 80%
• Predetermined overhead rate for department E
= Estimated Manufacturing overheads/Estimated Direct labor hours
Manufacturing overheads = 1,750,000
Direct labor hours = 125,000
= 1,750,000/125,000
= $14 per labor hour
• Predetermined overhead rate for department K
= Estimated Manufacturing overheads/Estimated Machine hours
Manufacturing overheads = 1,080,000
Machine hours = 120,000
= 1,080,000/120,000
= $9 per machine hour
