At the end of the construction year for his business, Martin's uncle Edward is having trouble dealing with the compari/s indirect costs as there are just so many of them! To helphis uncle (and because he hopes to take over the family business one day), Martin listed a few examples of what he thought would be indirect costs for this company: glue, nails, staples, drywall compound, and tape. Edward 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, $524,000, significantly exceeded Edward's budgeted MOH of $447,840. In the past, Edward assigned MOH costs to individual jobs based on the direct labor hours of his employees. At the beginning of the year, based on the workhe had planned and still hoped to earn at that time, Edward budgeted for 144,000 DL hours. In reviewing the payroll records of his employees, Edward now sees that they actually worked 159,000 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? 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 rote onswer to 2 decimal ploces, e.9. 52.75) Budzeted MOH rate Applied MOH Difference $1DLhour $ $ Martin wondered if his uncle should consider a different allocation base, since this construction business is both labor-intensive and material-intensive. Edward agrees and determines that total BM costs incurred for the jobs worked on this year amounted to $1,239,000. At the beginning of the year, Edward's budgeted DM costs (for the projects he knew about at the time) were $895,680 Determine what the budgeted MOH rate would have been if Edward had used direct material cost as the cost driver: Further. determine applied MOH and under-or overapplied MOH for this scenario. (Round MOH rote onswer to 2 decimal piores, eg. 52.75 . Budseted MOHrate ADS Applied MOH Difference Which cost driver would you recommend Edward use going forward