ABC LTD. estimates factory Overheads of R225 000.00 for the next year. An estimated

25 000 units will be produced. Material cost was estimated at R500 000.00. Conversion will require

an estimated 56250 labor hours at a cost of R8.00 per hour and estimated 75 000 machine.


Calculate the predetermined overhead rate to be used in applying factory overheads to production on each of the following basis:

1. Units of Production

2. Material Cost

3. Direct labor hours

4. Direct labor cost

5. Machine hours