The following transactions occurred in April.
1) Materials Purchased: $225,000
2) Materials Requisitioned: $210,000
| Allocated to |
|
| Job 101 |
$35,000 |
| Job 102 |
$80,000 |
| Job 103 |
$70,000 |
| Indirect |
$25,000 |
3) Factory Payroll for April: $100,000.
| Allocated to: |
|
| Job 101 |
$20,000 |
| Job 102 |
$40,000 |
| Job 103 |
$30,000 |
| Indirect |
$10,000 |
4) All other factory costs incurred in April: $60,000
5) The basis for allocating overhead to production is machine hours. At the beginning of the year it was estimated that the company would incur the following amounts for the year:
| Total Overhead |
$900,000 |
| Total Machine Hours |
125,000 |
6) During April, machine hours were tracked to the following jobs:
| Job 101 |
4,000 |
| Job 102 |
6,500 |
| Job 103 |
3,000 |
What is the predetermined overhead application rate? Enter the rate accurate to two decimal places. If you think the answer is $10 per machine hour, you need to enter your answer as $10.00, not $10.0 or $10.