Following question based on accounting, please show all work. Thank you.

Pure Solutions has been struggling with allocating its overhead costs to individual jobs. "There are so many methods to choose from, " thought the company's newly recruited junior accountant Rita Gandhi. "What is the best way to allocate overhead costs?" For the first three years, the company used direct labor hours as the base to allocate overhead costs. As the level of automation increased the company switched to using machine hours as the allocation base. Now the company has decided to use activity-based costing. Details of its estimated overhead for 2014 are as follows: The company also budgeted 50,000 direct labor hours at a cost of $16 per hour. Rita Gandhi decided to conduct an experiment on two jobs, Job X-1 and Job Y-4 whose details are provided below. She suspected that, in the case of some jobs, there will be little difference between the overhead applied using direct labor hours and using activity-based costing. Similarly, in the case of other jobs, there will be little difference between overhead applied using machine hours and using activity-based costing. "If this is indeed the case which method should I believe to be the right one, " she wondered. Compute the cost per unit for each job using three different methods of overhead allocation: direct labor hours, machine hours and activity-based costing. Do you agree with Rita Gandhi? During the first three quarters the company consumed 40,000 direct labor hours and 150,000 machine hours. Compute the total applied overhead if direct labor hours is used as the allocation base and if machine hours is used as the allocation base. Also, assume that actual overhead amounted to 1.68 million. Calculate the under- or over applied overhead in both cases. Will the company's income be different when different overhead allocation bases are used to apply overhead? Please explain. What leads to the differences in the amount of overhead allocated under the three methods in addition to different allocation bases being used