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Use your knowledge of how costs function (period or product) and traceability (direct or indirect) to compute the predetermined overhead rate for R.A.Mona. Assume the company intends to use dire abor cost as the basis to allocate overhead. R.A.Mona estimates the following figures for the com iscal year: (Note: The costs are in no particular order.) Property Taxes on office building $ 18,000 Salary of office staff 450,000 Rent on factory building 145,000 Direct Labor 600,000 Office supplies 18,000 30,000 Depreciation on factory building Dividends 50,000 Factory utilities 170,000 Sales commissions 60,000 Interest expense 35,500 250,000 Salary of factory supervisors Indirect Material 109,000 Advertising expense 50,000 Depreciation on factory equipment 150,000 Wages of factory maintenance workers 240,000 Small tools for factory 25,100 Repair of factory equipment. 5,000 Depreciation of office equipment 15,000 Raw materials purchases 2,350,000 Sales commissions 60,000 Interest expense 35,500 Salary of factory supervisors 250,000 Indirect Material 109,000 Advertising expense 50,000 Depreciation on factory equipment 150,000 Wages of factory maintenance workers 240,000 Small tools for factory 25,100 Repair of factory equipment. 5,0o Depreciation of office equipment 15,000 Raw materials purchases 2,350,000 Lease for office copier 22,500 200% 283% O 193% 187% 697%

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