Moonrays, Inc. manufactures both normal and premium tube lights. The company allocates manufacturing overhead using a single plant wide rate with the machine hours as the allocation base. Estimated overhead costs for the year are $108,000. Additional estimated information is given below.
________________________Normal Premium
Machine hours (MHr)..........29,000.....................48,000
Direct materials................$58,000..................$440,000
Calculate the predetermined overhead allocation rate.