Please answer all the questions

7. Firm ABC uses direct labor hours as an allocation base to use to assign manufacturing overhead to jobs. However, the firm is exploring other option to use an allocation base such as machine hours. For the current quarter year, the firm estimates the following information: $795,000 Manufacturing overhead cost Direct labor cost, $696,000 Direct labor hours $26,500 hours Machine hours $6,625 hours However, later at the end of the quarter, the firm observes the actual values as follows: Manufacturing overhead cost $734,000 Direct labor cost, $716,000 Direct labor hours $24,500 hours Machine hours $6,500 hours a) Calculate the predetermined overhead rate (POHR) using the current practice (using direct labor hours as base). b) Suppose you are at the beginning of a quarter, and you estimate that Job X will require $90 of direct materials, 40 machine hours and 20 direct labor hours at $34 per hour. What would be recorded as the cost of Job X using the current practice (using the direct labor hours as base)? Assume that machine hour is part of the overhead, so it does not directly affect the total cost. c) After seeing the actual costs, does the firm overapply or underapply manufacturing overhead by using direct labor hour as base? (Hint: you have to calculate the applied overhead first.) d) If the firm had used machine hours (instead of direct labor hours) as its allocation base, compute predetermined overhead rate (POHR) and the applied overhead cost of the quarter. Does the firm overapply or underapply manufacturing overhead in this case? e) Based on the given data alone, which allocation base would have provided the most accurate measure for applying manufacturing overhead costs to production