Reference no: EM132547958

Indah Architectures uses job order costing to trace the costs for each project of developing bungalow houses. The company offers house plan drawings and consultation services to its customers. The following data presents information on three projects of sketching plans and bungalow houses which is still in process for the month of October.

Project                                 STEVE               JOHN              ANDERSON

Direct Labour -Hours           84                 70                     63

Direct materials costs         RM 3,200           RM 2,600       RM 1,100

Direct labour costs            RM 6,700             RM 5,500        RM 5,000

• The company has estimated the overheads for the project to be RM 30,000 and the estimated hours incurred for the Direct Labour is 250 hours.
• The overhead costs are allocated to the projects based on the Direct Labour hours since most of the overheads are related to the cost of equipment and office for sketching the plans. The actual overhead cost is RM 21,000 for October. All projects are completed by the end of October.

Required

Question (i) Determine the predetermined overhead rate