Question: I know to answer A. I need to divide Budgeted FOH by each independent volume but I can not figure out how to calculate the

I know to answer A. I need to divide Budgeted FOH by each independent volume but I can not figure out how to calculate the budgeted FOH. PLEASE HELP

The controller has asked you to examine different distribution methods for applying factory overhead to the various production orders that are processed during a year.

The following information was taken from the annual budget:

Direct Labor cost: 480,000

Direct Labor hours: 144,000

Machine Hours: 100,000

Manufacturing costs:

Direct Materials 200,000

Direct Labor 480,000

Indirect Labor 100,000

Electric Power 40,000

Payroll Taxes 22,800

Machine maintenance and repair 15,200

Factory Supplies 6,000

Factory heat and light 4,000

Depreciation, taxes and insurance:

Factory Buildings 130,000

Machinery 402,000

1,400,000

Determine the following factory overhead application rates:

Direct Labor Cost

Direct Machine Hours

Machine Hours

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