S 2-10 (Algo) Computing predetermined overhead rate LO P3 At the beginning of the year, a company estimates total direct materials costs of $1,090,000 and total overhead costs of $1,330,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Predetermined evethead.rate Numerator Denominator Rate Rate Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.) The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost. Inventories Raw materials Work in process Beginning of period 541,000 End of Period 19,400 Finished goods Cost incurred for the period Raw materials purchases $ 180,000 Factory payroll 100,000 Factory overhead (actual) Indirect materials used 14,000 Indirect labor used Other overhead costs 23,000 115,000 Exercise 2-13 (Algo) Recording materials; direct and Indirect LO P1, P3 1. Raw materials purchases for cash. 2. Direct materials used. 3. Indirect materials used. Prepare journal entries for the above transactions for the period. View transaction list Journal entry worksheet < A B C Record the raw material purchases for cash. Note Enter debits before cats Transaction 1 General Journal Debit Credit