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Maxwell Company computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated the following for

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Maxwell Company computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated the following for the coming year: Estimated direct labor-hours 36,000 hours Estimated fixed manufacturing overhead expenses AED 2,088,000 Estimated variable manufacturing overhead AED 18 per direct labor-hour Maxwell's actual manufacturing overhead for the year was AED 1,950,000 and its actual total direct labor was 30,000 hours. Required: 1) Calculate the company's estimated total manufacturing overhead (2.5 Marks) 2) Calculate the company's predetermined overhead rate per direct labor-hour (1.5 Marks) 3) Calculate the over-under applied manufacturing overhead

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