Cranston company estimates the following overhead costs for the coming year: equipment depreciation $160,000equipment maintenance 60,000supervisory salaries 40,000factory rent 100,000total $360,000cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. required: a. calculate the predetermined overhead rate using direct labor costs as the allocation base. round your answer to the nearest cent.$ per direct labor dollarb. calculate the predetermined overhead rate using machine hours as the allocation base.$ per machine hour

$   0.60 per labor cost

$ 24.00 per machine hours

Explanation:

expected overhead cosT:

depreicaiotn 160,000

maintenance  60,000

supervisory    40,000

rent               100,000

Total overhead cost: 360,000

The predetermined overhead rate is division of the expected overhead cost over a cost driver

a) being labor cost: 600,000

overhead rate: 360,000 / 600,000 = $0.6 per labor cost

b) being machine hours

overhead rate: 360,000 / 15,000 = $ 24 per machine hours

answer; tech (a) is correct;

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.