Marine Components produces parts for alrplanes and ships. The parts are produced to specification by their customers, who pay ether a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee cost plus). For the upcoming year (year 2, Marine expects only two clients client and client 2 The work done for client 1 will all be done under fored-price contracts while the work done for client 2 will all be done under cost-plus contracts. The controller at Marine Components chose direct labor cost as the allocation base in year 2 based on what she considered reflected the relation between overhead and direct labor cost Year 3 is approaching and again the company only expects two clients client1 and client 3 Work for client will continue to be billed using fixed price contracts, and client 3 will be billed based on cost-plus contracts Manufacturing overhead for year 3 is estimated to be $26 million Other budgeted data for year 3 include: Machine-hour's (thousands) Direct labor cost (5000) 'Elrent i 5,200 $5,000 client 7,800 55,000 Required a. Compute the predetermined rate assuming that Marine Components uses machine-hours to apply overhead b. Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead Complete this question by entering your answers in the tabs below. Required Required B Compute the predetermined rate assuming that Marine Components uses machine-hours to apply overhead. Round your answer to deal places) Aplication per machine hour Required B Marine Components produces parts for alrplanes and ships. The parts are produced to specification by their customers, who pay either a fixed price (the price does not depend directly on the cost of the job) or price equal to recorded cost plus a fixed fee cost plus). For the upcoming year Year 2). Marine expects only two clients (client 1 and client 2. The work done for client will all be done under fixed-price contracts while the work done for client 2 will all be done under cost-plus contracts. The controller at Marine Components chose direct labor cost as the allocation base in year 2. based on what she considered reflected the relation between overhead and direct labor cost. Year 3 is approaching and again the company only expects two clients: client1 and client 3. Work for client will continue to be billed using foced-price contracts, and client 3 will be billed based on cost-plus contracts Manufacturing overhead for year 3 is estimated to be $26 million Other budgeted data for year 3 Includes C Machine-hours (thousands) 5,200 Direct labor cost (5000) $5.00 $5,000 DO rences 7.80 Required: a. Compute the predetermined rate assuming that Marine Components uses machine hours to apply overhead. b. Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead. Complete this question by entering your answers in the tabs below. Required Requins Comoute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead. of direct labor cost Abdictionate (Required