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Question 4 (Spts). Dream Thrum Corp. has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining Assembly Total $ 22,500,000 $ 900,000 $ 23,400,000 780,000 731,250 30,000 710,000 750,000 21,250 Job A Direct labor hours Machine hours Machining Assembly Total 10 15 13 Job B Direct labor hours Machine hours Machining Assembly Total 4 12 15 Required If Dream Thrum Corp. uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? a. b. If Dream Thrum Corp. uses a plantwide predetermined overhead rate with machine-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? Assume that instead Dream Thrum Corp. uses multiple predetermined overhead rates, based on appropriate cost drivers in each department. Manufacturing overhead (MOH) in the Machining Department is allocated based on machine-hours and MOH in the Assembly Department is allocated based on direct labor-hours. How much MOH cost would be applied to Job A? Job B c. d. Compare your answers to a., b., and c. Which allocation method (a., b., or c.) do you think is most appropriate for this firm? Why? Briefly explain your