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Exercise 7.38 (Algo) Predetermined Overhead Rates: Ethical issues (LO 7.3, 5) Marine Components groduces parts for airplanes and ships. The parts aro peoduced to specification by their custemers, who pay enther of fixed price (phe price dees not depend directly on the cost of the job) or price equal to recorded cost plus a fived fee fcoss plusi. For the upcoming year boac 2l. Marine expects only two clients (ilient 1 and client 2). The work done for cient 1 will al bo done under fived-price contracts while the work done for clent 2 will oll be done lnder cest-glus contects. Manufacturing pvechead for year 2 is estmated to be $21 million. Other budgeted data for year 2 include the following Required: a. Compute the predetermined rate assuming that Marine Components uses machine-hours to apply averhead. B. Compute the predetermined rate assuming that Marine Components ises drect labor cost to apply overheed. Complete this questien by entering your answers in the tabs below. Cerripute the predetermined rate assuming that kesine Components uses machine-hours to apply wernead. (Round your aniwer to 2 Gecrial places.) Marine Components produces parts for airplanes and ships. The parts are produced to specification by their custamers, wha poy pither a fixed price (the price does not depend directiy on the cost of the job) or price equal to recorded cost plus a fixnd fee (cost phus. For the upcoming yoar fyoar 24, Marine expects only two clients (client 1 and client 2). The work done for dient t will ali be dcne under fixed-price contracts while the work done for client 2 will all be done under cost,plus contracts. Manutacturng ovemeod for year 2 is estimated to be $21 million. Other budgeted data for year 2 include the following. Required: a. Compute the predetermined rate assuming that Marine Components uses machine-hours to apply ovecheod; b. Compute the predetermined rate assuming that Marine Components uses direct labor cost to apply overhead. Complete this question by entering your answers in the tabs below. Compute the predetermined rate assuming that Marine Components uses diroct labor cost to apply overhead

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