TCC Inc. has prepared the following estimates for the current year:

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A. Compute the predetermined overhead rate based on (1) direct labor hours, (2) direct labor cost, and (3) machine hours.
B. Assume the following jobs were worked during the year:

Compute the amount of overhead that would have been applied to each of these jobs using the various overhead rates you computed in part (A).
C. Explain why the amount of overhead applied to each job varies with the activity base.

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Direct labor hours 80.000 Direct labor cost $1,000,000 Machine hours 60.000 Manufacturing overhead $600,000