1. MAC. Ltd manufacturers sheet music stands in two separate departments, cutting and welding. The following data relate to the year just ended: Total plant Budgeted manufacturing overhead Actual manufacturing overhead Budgeted machine hours Actual machine hours Budgeted direct labour hours Actual direct labour hours Cutting department $60 000 54 000 50 000 27 000 30 000 29 400 Welding department $140 000 108 000 110 000 90 000 20 000 11 700 $200 000 162 000 160 000 117 000 50 000 41 100 One of MAC's major products, the B Frame, has the following production requirements: Total plant Machine hours Direct labour hours Cutting Department 3.5 5.0 Welding Department 5.0 2.0 8.5 7.0 Required: Calculate the manufacturing overhead cost of the B Frame using: a) a predetermined plantwide rate based on direct labour hours b) a predetermined plantwide rate based on machine hours c) predetermined departmental rates based on direct labour hours for the cutting department and on machine hours for the welding department. Which of these three estimates of overhead cost is likely to be the most accurate? Explain