Nautical Footwear Inc. manufactures women’s boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2022, it was estimated that manufacturing overhead would total $487,200 and that 33,600 machine hours would be used.

Required:
a. Calculate the predetermined overhead application rate that will be used for absorption costing purposes during 2022.
b. During May, 5,860 pairs of shoes were made. Raw materials costing $28,468 were used, and direct labor costs totaled $28,800. A total of 2,840 machine hours were worked during the month of May. Calculate the cost per pair of shoes made during May.
c. At the end of May, 1,578 pairs of shoes were in ending inventory. Calculate the cost of the ending inventory and the cost of the shoes sold during May.