At the end of the construction year for his basiness. Steven's uncle Kenneth is having trouble dealing with the company's indirect costs as there are just so many of them! To help his uncie (and because he hopes to take over the family business one day). Steven listed a few examples of what he thought would be indirect costs for this company: glue, nails, staples, drywall compound, and tape. Kenneth then added supervisor costs, as well as depreciation of the construction trucks, generators, saws, and other equipment, to the list. Unfortunately, the total of these MOH costs, $545,000, significantly exceeded Kenneth's budgeted MOH of $467,180. In the past. Kenneth assigned MOH costs to individual jobs based on the direct labor hours of his employees. At the beginning of the year, based on the work he had planned and still hoped to earn at that time, Kenneth budgeted for 142,000DL hours. In reviewing the payroll records of his employees, Kennethnow sees that they actually worked 157,000 hours this year while receiving an average wage of $15 per hour. Wow, business must be good! (a) When applying MOH based on direct labor hours, is it important to know the direct labor hourly rate? 2ok and Media Which cost driver would you recommend Kenneth use going forward? DL hours Media Steven wondered if his uncle should consider a different allocation base, since this construction business is both labor-intensive and material-intensive Kenneth agrees and determines that total DM costs incurred for the jobs worked on this year amounted to $1,237,000. At the beginning of the vear. Kenneth's budseted OM costs (for the projects he knew about at the time) were $934,360. Determine what the bodgeted MOH rate would have been if Kenineth had used direct material cost as the cost driver. Further. determine applied MOH and under-or overapplied MOH for this scenario. (Round MOH rate answer to 2 decimal places, es. 52.75) Based on the above information, determine the budgeted MOH rate based on DL hours, apply MOH for the year, and determine under-or overapplied MOH for the year. (Round MOH rate answer to 2 decimal places, es 52.75.) Budgeted MOHrate 5 /DL hour eTextbook and Media