1.

Predetermined overhead rate = Estimated total fixed manufacturing overhead / Estimated

machine
hours
= $951,888 / 85,000 = 11.20 + 5.55 = $16.75 per hour

2.

Opening Cash Balance

$27,000

Cash Inflow

136,000

Cash Outflow

(128,000)

Borrowings*

15,000
_______

Closing Balance

$50,000

*{27 + 136 128 50 = 15}