Intercontinental’s special order requires 1,200 kilograms of genatope, a solid chemical regularly used in the company’s products. The current stock of genatope is 9,500 kilograms at a book value of 8.80 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 9.40 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 9.00 p when normal restocking takes place. Any order of genatope must be in the amount of 5,500 kilograms.
Required:
a. What is the relative cost of genatope?

Harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. the company also estimated $599,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. harris's actual manufacturing overhead for the year was $768,234 and its actual total direct labor was 34,500 hours. required: compute the company's predetermined overhead rate for the year. (round your answer to 2 decimal places.)