Northern Manufacturing uses a predetermined manufacturing overhead rate to allocateoverhead to ...

Northern Manufacturing uses a predetermined manufacturing overhead rate to allocate
overhead to individual jobs. At the beginning of the year, the company expected to incur the following:

Manufacturing overhead costs    $320,000
Direct labour cost    640,000
Machine hours    20,000

At the end of the year, the company had actually incurred the following:

Direct labour cost    $920,000
Depreciation on manufacturing plant and equipment    290,000
Property taxes on plant    55,000
Sales salaries   12,000
Delivery drivers wages    8,000
Plant janitors wages    40,000
Machine hours    20,500 hours

Required:
1.   Compute Northerns's indirect cost allocation rate based on labour cost.
2.   Compute Northerns's indirect cost allocation rate based on machine hours.
3.   How much overhead was allocated during the year if the allocation base was machine hours?
4.   How much manufacturing overhead was incurred during the year?