Exercise 3 (Applying Overhead with Various Bases) Estimated cost and operating data for three companies for the upcoming year are given below: Company Direct labor-hours Machine-hours Raw materials cost Manufacturing overhead 30,000 90,000 P160,000 40,000 18,000 P240,000 60,000 25,000 P300,000 432,000 270,000 384,000 cost Predetermined overhead rates are computed using the following bases in the three companies: Company Overhead Rate Based on - Direct labor-hours Machine-hours Raw materials cost Required 1. Compute the predetermined overhead rate to be used in each company 2. Assume that Company X works on three jobs during the upcoming year Direct labor-hours recorded by job are: job 237, 7,000 hours; job 238, 30,000 hours; and job 239, 21,000 hours. How much overhead cost will the company apply to Work in Process for the year? If actual costs are P420,000 for the year, will overhead be underapplied or overapplied? By how much