26. Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Pyramid Company expects to incur $3,000,000 in manufacturing overhead costs this year. During the year, it expects to use 40,000 direct labor hours at a cost of $600,000 and 80,000 machine hours. Required: 1. Prepare a predetermined overhead rate based on direct labor hours, direct labor cost, and machine hours. 2. Why might Pyramid Company prefer to use machine hours to allocate manufacturing overhead? 3. Using each of the predetermined overhead rates calculated in part a and the data that follows for job 128, determine the cost of job 128 Direct $6,000 materials $4.000 (200 hours at $15 per hour) + (100 hours at $10 per Direct labor hour) Machine time 700 hours