In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to raw materials dollars. direct labor hours. machine hours. indirect labor dollars.

machine hours

Explanation:

The formula to compute the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or estimated direct labor hours )

We simply divided the total estimated manufacturing overhead by the activity base

So in the given situation, since the  automated manufacturing operations wants to calculate the predetermined overhead rate so they choose the machine hours as the number of machines are used.

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"