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At the end of the construction year for his business, Jordan's uncle Joseph is having trouble dealing with the company's indirect costs as there are just so many of them! To help his uncle (and because he hopes to take over the family business one day), Jordan listed a few examples of what he thought would be indirect costs for this company: glue, nails, staples, drywall compound, and tape. Joseph then added supervisor costs, as well as depreciation of the construction trucks, generators, saws, and other equipment, to the list. Unfortunately, the total of these MOH costs. $511,000. significantly exceeded Joseph's budgeted MOH of $430,140. In the past. Joseph assigned MOH costs to individual jobs based on the direct labor hours of his employees. At the beginning of the year, based on the work he had planned and still hoped to earn at that time, Joseph budgeted for 134,000 DL hours. In reviewing the payroll records of his employees, Joseph now sees that they actually worked 149,000 hours this year whille receiving an average wage ot $15 per hour. Wow, business must be good! Which cost driver would you recommend Joseph use going forward? Based on the above information, determine the budgeted MOH rate based on DL hours, apply MOH for the year, and determine under- or overapplied MOH for the year, (Round MOH rate answer to 2 decimal places, e.g. 52.75.) Budgeted MOH rate /DL hour Applled MOH Difference Jordan wondered if his uncle should consider a different allocation base, since this construction business is both labor-intensive and material-intensive. Joseph agrees and determines that total DM costs incurred for the jobs worked on this year amounted to $1,229,000. At the beginning of the year. Joseph's budgeted DM costs (for the projects he knew about at the time) were $860,280. Determine what the budgeted MOH rate would have been if Joseph had used direct material cost as the cost driver. Further; determine applied MOH and under-or overapplied MOH for this scenario. (Round MOH rate answer to 2 decimal places, e.g. 52.75.) Budgeted MOH rate $ IDMS Applied MOH 5

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