Alpha Company uses a normal costing system and applies overhead to jobs based on directlabor hours. It is estimated that 160,000 direct labor hours and 110,000 machine hours willbe required to support the planned production for the year. It is also estimated that $200,000of total fixed overhead cost and $2.75 of variable overhead per direct labor-hour will berequired for the year.a. What allocation base does Alpha Company use?b. What is the total annual estimated manufacturing cost for Alpha Company?c. Calculate the predetermined overhead rate for Alpha Company.Assume Alpha Company uses a factory wide Pre determined Overhead d. If the estimated variable overhead per direct labor hour changes to $1.50,what is the revised predetermined overhead rate for Alpha Company?
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