$1.$ McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $$362,310$ during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows:

Debbie Tara

Annual Salary $ $157,920$ $ $83,620$

Billable Hours $2,1001,850$

The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie's and Tara$$s services. The hourly billing rate should be set to cover the total cost of services $($salary plus overhead$)$ plus a $25$ percent markup.

$1.$ Compute the predetermined overhead rate.

$2.$ Compute the hourly billing rates for Debbie and Tara.

$2.$ Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours.

Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here:

Estimated Value Actual Value

Manufacturing overhead cost $ $593,000$ $ $654,000$

Direct labor cost $ $395,000$ $ $449,000$

Direct labor hours $16,400$ hours $17,900$ hours

Machine hours $7,400$ hours $8,400$ hours

Required:

Based on the company$$s current allocation base $($direct labor hours$),$ compute the following:

Predetermined overhead rate.

Note: Round your answer to $2$ decimal places.

Applied manufacturing overhead.

Note: Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole dollar amount.

Over$-$ or underapplied manufacturing overhead.

Note: Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole dollar amount.

If the company had used direct labor dollars $($instead of direct labor hours$)$ as its allocation base, compute the following:

Predetermined overhead rate.

Note: Round your answer to $2$ decimal places, i$.$e$.3\mathrm{.}63\%.$

Applied manufacturing overhead.

Note: Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole dollar amount.

Over$-$ or underapplied manufacturing overhead.

Note: Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole dollar amount.

If the company had used machine hours $($instead of direct labor hours$)$ as its allocation base, compute the following:

Predetermined overhead rate.

Note: Round your answer to $2$ decimal places.

Applied manufacturing overhead.

Note: Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole dollar amount.

Over$-$ or underapplied manufacturing overhead.

Note: Round your intermediate calculations to $2$ decimal places and final answer to the nearest whole dollar amount.

Based on last year$$s data alone, which allocation base would have provided the most accurate measure for applying manufacturing overhead costs to production?