Estimated cost and operating data for three companies for the upcoming year follow:

Predetermined overhead rates are computed using the following bases in the three companies:

Required:
1. Compute the predetermined overhead rate to be used in each company during the upcoming year.
2. Assume that Company X works on three jobs during the upcoming year. Direct labor-hours recorded by job are: Job 418, 12,000 hours; Job 419, 36,000 hours; Job 420, 30,000 hours. How much overhead cost will the company apply to Work in Process for the year? If actual overhead costs total $530,000 for the year, will overhead be underapplied or overapplied? By how much?

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Direct labor-hours Machine-hours... Direct materials cost Manufacturing overhead cost Company X Y Z 80,000 45,000 60,000 30,000 70,000 21,000 $400,000 $290,000 $300,000 $536,000 $315,000 $480,000