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Custom Auto Parts manufactures parts to order for antique cars. Custom Auto Parts makes everything from fenders to engine blocks. Each customer order is treated as a job. The company currently has two jobs, No. 9823 and No. 9824 that are complete, although overhead has not yet been applied. The company wants to know what each job's cost would be under alternative overhead allocation rates based on: (1) direct labor cost, (2) direct labor hours, and (3) machine hours. Estimates for this year are as follows:
Depreciation on machinery accounts for 75 percent of the overhead costs. The job-cost sheets show:
Job 9823 Job 9824
Direct material $1,000 $2,000
Direct labor cost $1,400 $1,400
Direct labor hours 150 130
Machine hours 130 270
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