1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company. Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH). Estimated Selected Amounts for the Year Estimated depreciation on equipment $1,200.00 Estimated total Office Manager/Knitting Supervisor wages $36,000.00 Estimated office utilities $3,000.00 Estimated factory utilities $4,800.00 Estimated factory rent $18,000.00   Activity Base Data   Estimated number of DLH for the year 5,000 Estimated number of MH for the year 3,500   Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.

Question
1. Review the data in the Predetermined Factory Overhead Rate panel, and compute the predetermined factory overhead rate for POGP Company.
Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH).
Estimated Selected Amounts for the Year
Estimated depreciation on equipment $1,200.00
Estimated total Office Manager/Knitting Supervisor wages $36,000.00
Estimated office utilities $3,000.00
Estimated factory utilities $4,800.00
Estimated factory rent $18,000.00
 
Activity Base Data
 
Estimated number of DLH for the year 5,000
Estimated number of MH for the year 3,500
 
Calculate the predetermined factory overhead rate for the current year. If required, round your answers to the nearest cent.

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