The management of YWZ Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company's controller has provided an example to illustrate how this new system would work.

Estimated activity for the upcoming year		76,000	machine-hours
Capacity		94,000	machine-hours
Actual activity for the year		82,800	machine-hours
Manufacturing overhead (all fixed)	$	5,572,320	per year

Job Q58A, which required 130 machine-hours, is one of the jobs worked on during the year.

Required:

1.Determine the predetermined overhead rate if the predetermined overhead rate is based on the estimated activity for the upcoming year.

2.Determine how much overhead would be applied to Job Q58A if the predetermined overhead rate is based on estimated activity for the upcoming year.

3.Determine the predetermined overhead rate if the predetermined overhead rate is based on the activity at capacity.

4.Determine how much overhead would be applied to Job Q58A if the predetermined overhead rate is based on activity at capacity.