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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Predetermined Manufacturing Overhead Rates
East Lake Corporation uses a job order costing system and applies manufacturing overhead using a predetermined overhead rate. The following data are available for the past two years.

1. Compute the predetermined overhead rate for each of the two years, based on (a) direct labor hours, (b) direct materials costs, and (c) machine hours
2. Interpretive Question: Which allocation basis would you recommend for applying manufacturing overhead? Why?
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