The given question is incomplete therefore I am giving general answer based on my knowledge. For every dollar of direct labour costs, $0.80 of overhead will be assigned. for every dollar of overhead costs, $1.25 of direct labour will be assigned.
A predetermined overhead rate cannot be determined because the activity base (direct labour costs) and the total overhead costs are the only information given. To calculate the predetermined overhead rate, you would need to know the total estimated activity level (measured in direct labour hours).
The overhead rate is the proportion of a company's indirect expenditures, such as rent and other administrative expenses, to its direct costs, sales, or other inputs, like machine hours. It gives business owners and managers an idea of indirect costs in comparison to, say, its direct manufacturing or gross sales costs.
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