During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data:Direct material (16,000 lb.)$70,000Direct labor (@ $20/hr.)$20,000Factory administration$15,000Indirect labor$10,000Indirect material$14,000Non factory administrative expenses$16,000Other manufacturing overhead$15,000Maintenance of factory machine$20,000Sales commissions$70,000Direct labor hours2,000Machine hours8,000Calculate the predetermined manufacturing overhead rate for the coming year using direct labor hour as the allocation base. Round your answer to two decimal places when applicable.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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During the coming accounting year, Baker Manufacturing, Inc., anticipates the following costs, expenses, and operating data:

Direct material (16,000 lb.)	$70,000
Direct labor (@ $20/hr.)	$20,000
Factory administration	$15,000
Indirect labor	$10,000
Indirect material	$14,000
Non factory administrative expenses	$16,000
Other manufacturing overhead	$15,000
Maintenance of factory machine	$20,000
Sales commissions	$70,000
Direct labor hours	2,000
Machine hours	8,000

Calculate the predetermined manufacturing overhead rate for the coming year using direct labor hour as the allocation base. Round your answer to two decimal places when applicable.

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