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:

1a. Predetermined Overhead Rate per DLH 1b. Applied Manufacturing Overhead 1c. Manufacturing Overhead 2a. Predetermined Overhead Rate % of direct labor cost 2b. Applied Manufacturing Overhead 2c. Manufacturing Overhead 3a. Predetermined Overhead Rate per machine hour 3b. Applied Manufacturing Overhead 3c. Manufacturing Overhead 4. Most accurate measure13 Estimated Value Actual Value Manufacturing overhead cost $ 593, 000 654,090 Direct labor cost $ 395,090 $ 449,000 Direct labor hours 16,400 hours 17,900 hours Machine hours 7, 400 hours 8,400 hours Required