Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Walsh Company expects to incur $$3,000,000$ in manufacturing overhead costs this year. During the year, it expects to use $60,000$ direct labor hours at a cost of $$500,000$ and $75,000$ machine hours. Manufacturing Overhead Allocation Base and Calculating the Cost of Jobs. Walsh

Company expects to incur $$3,000,000$ in manufacturing overhead costs this year. During the

year, it expects to use $60,000$ direct labor hours at a cost of $$500,000$ and $75,000$ machine hours.

Required:

a$.$ Calculate the predetermined overhead rate based on direct labor hours, direct labor cost, and

machine hours.

b$.$ Why might the company prefer to use machine hours to allocate manufacturing overhead?

c$.$ Using each of the predetermined overhead rates calculated in requirement a and the data that

follows for job $128,$ determine the cost of job $128.$

Required:

Calculate the predetermined overhead rate based on direct labor hours, direct labor cost, and machine hours.

Why might the company prefer to use machine hours to allocate manufacturing overhead?

Using each of the predetermined overhead rates calculated in requirement a and the data that follows for job $128,$ determine the cost of job $128.$

Direct materials $$6,000$

Direct labor $$4,000(200$ hours at $$15$ per hour$)+(100$ hours at $$10$ per hour$)$

Machine time $700$ hours