A Company Expects Next Year's Overhead Costs to Be $400,000

Essay

A company expects next year's overhead costs to be $400,000.During this time,the company also expects to produce 1,000,000 units,have 200,000 direct labor hours,and 800,000 machine hours.
Make the following independent calculations.
a.Compute a plantwide overhead rate using units of production as the allocation base.
b.Compute a plantwide overhead rate using direct labor hours as the allocation base.
c.Compute a plantwide overhead rate using machine hours as the allocation base.