Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 27

Calculate predetermined overhead rate and unit cost Bentley estimates manufacturing overhead of $1,800,000 for 2016 and will apply overhead to units produced based on 720,000 machine hours. During 2016, Bentley used $1,450,000 of raw materials, paid $2,282,500 of direct labor, generated 715,000 machine hours, and produced 2,000,000 units.
Required:
Calculate Bentley's predetermined overhead rate and cost per unit of production for 2016.