re2learn.com/d21/le/content/383340/viewContent/2203210/View Question 2 (10 Marks) The following is selected information from the budget of the Acme Corp. at the beginning of the year: Estimated factory overhead Estimated direct labour hours Estimated machine hours $132,000 55,000 hours 42,000 hours $825,000 Estimated direct labour cost Actual factory overhead incurred during the year $144,000 Calculate the predetermined overhead application rate if the company uses the following as a basis: (you must show all your work and calculations) Direct labour hours. (3 Marks) (b) Direct labour cost. (c) Machine hours. (3 Marks) (3 Marks) (d) If method (a) was used and actual direct labour hours was 65,000. Was overhead over or under applied? By how much? (1 Mark) 1 Page