The following data are available for Haul-It-Away Truckers:

\begin{tabular}{|c|c|c|}

\hline & 1999 & 2000 \\

\hline Budgeted direct labor hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 135,000 & 140,000 \\

\hline Planned number of moving jobs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 300 & 310 \\

\hline Total miles to be driven . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . & 450,000 & $597,000 \quad$ \\

\hline Total budgeted overhead . . . . . . . . . . . . . . . . . . . . . . & $\$ 900,000$ & $\$ 1,200,000 \quad$ \\

\hline

\end{tabular}

1. Compute the predetermined overhead rate for each of the two years, if based on:

(a) direct labor hours,

(b) number of moving jobs, and

(c) total miles driven 2. Interpretive Question: Which allocation basis would you recommend for applying overhead? Why?