Ho-Ho-Ho Ltd. produces artificial Christmas trees that are tailored to meet customer specifications. Overhead is currently applied to jobs using direct labor hours as the cost driver/ allocation base. Cost and cost driver/allocation base information for the company for the year are estimated as follows: Estimated volume of the cost driver/ allocation base Overhead cost $50,000 1,000 Overhead cost pool Cost driver Quality control Number of inspections Machine repetitions Number of repetitions Receiving costs Number of orders Other overhead costs Number of labor hours $100,000 2,000 $6,000 250 $60,000 5,000 Ho-Ho-Ho Ltd. received an order for trees from the municipal government of the city of Singhyille in Quebec. Production requirements for the order are as follows: Direct material $1,560 $1,600 25 Direct labor (150 hours) Number of inspections Number of repetitions Number of orders 200 1 Required: Determine the cost of the Singhville job if the current method of allocating overhead costs based on direct labor hours is used. a. b. Determine the cost of the Singhville job if activity based costing is used to assign overhead costs. C. Assume that the company uses direct labor hours to apply overhead to jobs. By how much would overhead be over-applied or under-applied if actual overhead costs for the year equaled $228,000 and actual direct labor hours worked for the year equaled 5,200 hours? Be sure to indicate whether over-applied or under-applied