(TCO 2) XYZ Company uses budgeted overhead rates to apply overhead to individual jobs

(TCO 2) XYZ Company uses budgeted overhead rates to apply overhead to individual jobs. It uses a system based on

machine hours. Last year, the company made the following estimates for this year.

Direct labor costs                $15,000,000

Factory overhead costs       $18,500,000

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Direct Labor Hours                   $500,000

Machine Hours                      $1,000,000

(a) What is the budgeted overhead rate for the company? (Show your work)

(b) If Job #33133 had the costs listed below, what would be the total cost of Job #33133? (Show your work)

Material costs were $600,000;

Direct labor costs were $750,000;

Direct labor hours were 20,000; and

Machine hours were 22,000.