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Problem 6.(15 Points) Enlighten Inc., predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs. Miriam Levy, the president

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Problem 6.(15 Points) Enlighten Inc., predetermined overhead allocation rate with direct labor hours as the allocation base to allocate overhead costs. Miriam Levy, the president of Enlighten, decided to develop an ABC a manufacturing firm, has been using a single tem to accurately allocate the indirect costs. She identified two activities related to the total indirect costs-direct labor hours and machine maintenance. The other relevant details are given below: Estimated quantity of allocation base ty Allocation baseEstimated costs aterials handling Number of parts machine 590,000 1500 parts maintenance. Direct labor hours $8,000 Total 1400 DLHr During the current month, Enlighten's used 150 direct labor hours to make Product A. The job required the use of 450 parts in total. Determine the predetermined manufacturing overhead using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) 1.What amount of overhead would be allocated to Product A, if a company-wide rate based on direct labor hours were used? 2. How much overhead should be allocated to Product A based on Activity-Based Costing

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