Estimated cost and operating data for the forthcoming period for three companies are given below: Estimated cost and operating data for the three companies are given below:

Company A Company B Company C Direct labor hours 12,000 15,000 20,000 Manufacturing overhead $90,000 $120,000 $150,000 Machine hours 20,000 20,000 25,000 Direct labor cost $60,000 $ 75,000 $100,000

Actual cost and operating data for the three companies are given below: Company A Company B Company C Direct labor hours 10,000 15,500 16,000 Manufacturing overhead $95,000 $100,000 $175,000 Machine hours 21,000 19,000 30,000 Direct labor cost $55,000 $80,000 $90,000

You have been hired to assist Company A, Company B, and Company C design the most effective manufacturing overhead allocation system for each company. You must choose one activity base for each company. You must support your decision.