The overhead costs that Lucca Industries, Inc., used to compute its overhead rate for the past year are as follows:
- Indirect materials $79,200
- Maintenance 14,900
- Outside service contract 17,300
- Indirect labor 79,100
- Factory supervison 42,900
- Depreciation 85,000
- Factory Insurance 8,200
- Property taxes 6,500
- Heat, Light, power 7,700
- Miscellaneous 5,760
- Total Overhead $346,560
The allocation base for the past year was 45,600 total machine hours. For the next year, all overhead costs except depreciation, property taxes, and miscellaneous overhead are expected to increase by 10 percent. Depreciation should increase by 12 percent, and property taxes and miscellaneous overhead are expected to increase by 20 percent. Plant capacity in terms of machine hours used will increase by 4,400 hours. Compute the overhead rate for next year.