Allocation of Overhead P4. Nature Cosmetics Company applies overhead costs on the basis of machine hours The overhead rate is computed by analyzing data from the previous year to determine the percentage change in costs. Thus, this year's overhead rate will be based on the per- centage change multiplied by last year's costs. Last Year Machine hours Overhead costs: 55,360 $ 23,500 28,600 18,500 15,000 7,800 12,100 21,300 6,000 $132,800 Indirect labor Employee benefits Manufacturing supervision Factory insurance Janitorial services Depreciation, factory and machinery Miscellaneous overhead Total overhead This year the cost of utilities is expected to increase by 40 percent over the previ- ous year; the cost of indirect labor, employee benefits, and miscellaneous overhead is expected to increase by 30 percent over the previous year; the cost of insurance and depreciation is expected to increase by 20 percent over the previous year; and the cost of supervision and janitorial services is expected to increase by 10 percent over the previous year. Machine hours are expected to total 68,786 REQUIRED 1. Compute the projected costs, and use those costs to calculate the overhead rate for this year. (Round the rate to two decimal places.) 2. Jobs completed during this year and the machine hours used were as follows. Job No. 2214 2215 2216 2217 2218 2219 Determine the amount of overhead to be applied to each job and to total production during this year. Machine Hours 12,300 14,200 9,800 13,600 11,300 8,100