Question: E52 Time allowed: 15 minutes Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the

E5–2 Time allowed: 15 minutes Estimated cost and operating data for three companies for the upcoming year follow:

Company X Y Z Direct labour-hours 80,000 45,000 60,000 Machine-hours 30,000 70,000

Predetermined overhead rates are computed using the following bases in the three companies:

21,000 Direct materials cost 400,000 290,000 300,000 Manufacturing overhead cost 536,000 315,000

Required Compute the predetermined overhead rate to be used in each company during the upcoming year.

Company X Y Z Direct labour-hours 80,000 45,000 60,000 Machine-hours 30,000 70,000 21,000 Direct materials cost 400,000 290,000 300,000 Manufacturing overhead cost 536,000 315,000 480,000

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