Kilbourne Appliances produces two models of beverage coolers for homes and offices, the KA-15 and the KA-24. Data on operations and costs for March follow.

Required

a. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses direct labor-hours to allocate overhead costs.

b. Compute the predetermined overhead rate assuming that Kilbourne Appliances uses machinehours to allocate overhead costs. 

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Units produced. Machine-hours.. Direct labor-hours. Direct materials costs. Direct labor costs Manufacturing overhead costs.. Total costs KA-15 600 360 750 $72,000 15,000 KA-24 400 540 1,750 $120,000 35,000 Total 1,000 900 2,500 $192,000 50,000 187,200 $429,200