MT425:Calculate overhead allocation rates using each of the four possible allocation bases provided.

MT425 / MT 425 Managerial Finance and Accounting Kaplan University (KU Campus) James JiambalvoManagerial Accounting, 4e Hoboken, NJ: John Wiley & Sons.
Unit 2: Accounting, Management, and Cost DecisionsChapter 2, Exercise 2-12 Allocating Manufacturing Overhead to Jobs [LO 6, 7] Webber Fabricating estimated the following annual costs. Expected annual direct labor hours 40,000 Expected annual direct labor cost 625,000 Expected machine hours 20,000 Expected material cost for the year 800,000 Expected manufacturing overhead$1,000,000 Required a. Calculate overhead allocation rates using each of the four possible allocation bases provided. b. Determine the cost of the following job (number 253) using each of the four overhead allocation rates.