HEW estimates 2022 factory overhead at $320,000 and direct labor cost at $200,000. Direct labor hours are estimated to be 20,000. Cost information for the month of April, 2022 is as follows:

a. If factory overhead is allocated using a predetermined overhead rate based on direct labor cost, what is the amount of overhead assigned to each job?

b. If factory overhead is allocated using a predetermined overhead rate based on direct labor hours, what is the amount of overhead assigned to each job?

c. If the overhead allocations are not significantly different, which allocation base do you believe would be easier to use, from a cost-benefit perspective?

d. If factory overhead is allocated using a predetermined overhead rate based on direct labor cost, what is the amount of over- or underallocated overhead?

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Job Job 55 Job 56 Total Actual factory overhead Estimated factory overhead Estimated direct labor costs Estimated direct labor hours Actual Direct Labor Hours 900 DL hours 2,200 DL hours 3,100 DL hours $42,000 $320,000 $200,000 20,000 Actual Direct Labor Cost $9,400 $20,000 $29,400