Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. In the past, 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	$732,000	$842,000
Direct labor cost	$366,000	$377,000
Direct labor hours	14,640 hours	16,600 hours
Machine hours	18,300 hours	17,500 hours

Requirement 1:

Based on the company