RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000

Question:

RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000 machine-hours would be used.
(a) Compute the predetermined indirect cost application rate using machine hours as the burden vehicle.
(b) Determine the total cost of production for a product with direct material costs of $1 million, direct labor costs of $600,000, and 200 machine-hours.