At the end of the construction year for his business, Adam's uncle Thomas is having trouble dealing with the company direct costs, as there are many of them. To help his uncle Adam listed a few examples of what he thought would be ndirect costs for this company: glue, nails, staples, drywall compound, and tape. Thomas then added supervisor's cost, including depreciation of the construction trucks, generators, saws, and other equipment to the list; the total of these MOH costs $$521,000$ exceeded Thomas's budgeted MOH of $$434,700.$

In the past Thomas 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, Thomas budgeted for $$135,000$ DL hours; in reviewing the payroll records of his employees, Thomas now sees that they actually worked $150,000$ hours this year while receiving an average wage of $$15\mathrm{.}00$ per hour.

$($a$)$ When applying MOH based on direct labor hours, is it important to know the direct labor hourly rate? $($Yes $/$ No$)\_\_\_\_\_\_\_\_.$

$($b$)$ Based on the above information, determine the budgeted MOH rate based on DL hours, apply MOH for the year, and determine $($under or over$)$ applied MOH for the year

Budgeted MOH rate $$\_\_\_\_\_\_\_\_\_\_/$DL

Applied MOH $ $\_\_\_\_\_\_\_\_\_\_\_$

Difference $ $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($under applied, over applied, Not over$/$underapplied$)$

$($c$)$ Adam wondered if his uncle should consider a different allocation base, since his construction business is both labor$-$intensive and material$-$intensive. Thomas agrees and determines that total DM costs incurred for jobs worked this year amounted to $$1,230,000.$ At the beginning of the year Thomas's budgeted DM costs were $$805,000.$

Determine what the budgeted MOH rate would have been if Thomas had used direct material cost as the cost driver, also determine applied MOH and under$-$or over applied MOH for the scenario.

Budgeted MOH rate $$\_\_\_\_\_\_\_\_\_\_/$DM$

Applied MOH $ $\_\_\_\_\_\_\_\_\_\_$

Difference $ $\_\_\_\_\_\_\_\_,\_\_\_\_\_\_\_($overapplied$,$ Not over$/$Underapplied$,$ Underapplied$)$