1. 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 J------------------Company K------------Company L

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 J--------------Company K-----------------Company L

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 J, Company K, and Company L 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.