Saved Help Save & Exit Submit 5 Check my work Platinum Tracks, Inc., is a small audio recording studio located in Los Angeles. The company handles work for advertising agencies- primarily for radio ads-and has a few singers and bands as clients. Platinum Tracks hendles all aspects of recording from editing to making a digital master from which CDs can be copied. The compettion In the audio recording industry in Los Angeles has always been tough, but it has been getting even tougher over the last several years. The studio has been losing customers to newer studios that are equipped with more up-to-date equipment and that are able to offer very attractive prices and excellent service. Summary data concerning the last two years of operations follow 5 points eBook Print References Last Year This Yesr Estimated hours of studio service Estimated studio overhead cost Actual hours of studio aervice provided Actual studio overhead cost incurred Hours of studio service at capaelty 1,900 s 121 500 121,500 1.550 121,500 $ 121,500 7002-700 1, B00 The company applies studio overhead to recording joss on the bass of the hours of studio service provided. For example, 48 hours of studio time were required to record, edit, and master the Verde Baja music CD for a local La is fixed, and the actual overhead tino band. All of the studio overheed cost cost incurred was exacty as estimated at the beginning of the year in lest year and this year Required 1. Platinum Tracks computes its predetermined overmead rate at the beginning of each year besed on the estimated studio overhead cost and the estimated hours of studio service for the year, Using this approach, how much overhead would have been applied to the Verde Baja job last year? How about this yoar? 2. The president of Platinum Tracks hes heard that some companies in the industry have changed to a system of computing the predetermined overhead rate based on the hours of studio service that couild be provided at capacity. He would like to know what