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Estimated cost and operating data for three companies for the upcoming year follow: CompanyABCDirect labour-hours62,00031,00046,500Machine-hours31,00062,00015,500Direct materials cost$310,000$217,000$232,500Manufacturing overhead cost$310,000$303,800$953,250 Predetermined overhead rates are computed using

Estimated cost and operating data for three companies for the upcoming year follow:

CompanyABCDirect labour-hours62,00031,00046,500Machine-hours31,00062,00015,500Direct materials cost$310,000$217,000$232,500Manufacturing overhead cost$310,000$303,800$953,250

Predetermined overhead rates are computed using the following bases in the three companies:

CompanyOverhead Rate Based onADirect labour-hoursBMachine-hoursCDirect materials cost

Required:

1.Compute the predetermined overhead rate to be used in each company during the upcoming year.(Round your answers to 2 decimal places.)

2-a.Assume that company A works on three jobs during the upcoming year. Direct labour-hours recorded by job are as follows: job 418, 18,600 hours; job 419, 31,000 hours; job 420, 9,300 hours. How much overhead cost will the company apply to work in process for the year?(Do not round intermediate calculations.)

2-b.If actual overhead costs total $399,000 for the year, will overhead be under- or overapplied? By how much?(Do not round intermediate calculations.)

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