Heidelberg Fabrication manufactures two products, G-09 and G-35: Production at the plant is automated and any labor

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Heidelberg Fabrication manufactures two products, G-09 and G-35:

Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow: 


Required

a. Heidelberg currently applies overhead on the basis of machine-hours. What is the predetermined overhead rate for the quarter?

b. Heidelberg is thinking of adopting an ABC system. It has tentatively chosen the following cost drivers: machine-hours for machine depreciation, production runs for setup labor, and direct material dollars for materials handling. Compute the cost driver rates for the proposed system at Heidelberg. 

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