Problem $17-34$ Cost Allocation

RLW$-$II Enterpises estimated that indirect manufacturing costs for the year

would be $$75$ million and that $15,000$ machine$-$hourse 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 $$2$

million, direct$-$labor costs of $$2\mathrm{.}5$ million, and $200$ machine$-$hours.