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Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks. Each customer order is treated

Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks. Each customer order is treated as a job. The company currently has two jobs, Job 9823 and Job 9824, that are complete, although overhead has not yet been applied. The company wants to know what each jobs cost would be under alternative overhead allocation rates based on: (1) direct labor cost, (2) direct labor hours, and (3) machine hours. Estimates for this year are as follows:
Direct labor cost $240,000
Direct labor hours 26,000
Machine hours 6,500
Overhead costs $156,000
Depreciation on machinery accounts for 65 percent of the overhead costs. The job-cost sheets show:
Job 9823 Job 9824
Direct material $1,000 $2,400
Direct labor cost $1,400 $1,400
Direct labor hours 130 130
Machine hours 110 260

(a)

Determine the overhead allocation rate under the three suggested allocation bases. (Round answers to 2 decimal places, 15.25.)
Allocation bases Amount of overhead
Direct labor cost $

per labor dollar
Direct labor hours $

per labor hour
Machine hours $

per machine hour

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