At the end of the construction year for his business, Shawn's uncle Paul 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), Shawn listed a few examples of what he thought would be indi. rect costs for this company: glue, nails, staples, drywall compound, and tape. Paul then added supervisor costs, as well as depreciation of the construction trucks, generators, saws, and other equipment, to the list. Unfortu-nately, the total of these MOH costs, $485,000, significantly exceeded Paul's budgeted MOH of $395,000. In the past, Paul 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, Paul budgeted for 125,000 DL hours. In reviewing the payroll records of his employees, Paul now sees that they actually worked 140,000 hours this year while receiving an average wage of $15 per hour. Wow, business must be good! Required a. When applying MOH based on direct labor hours, is it important to know the direct labor hourly rate? Explain why or why not. b. 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. c. Shawn wondered if his uncle should consider a different allocation base, since this construction business is both labor-intensive and material-intensive. Paul agrees and determines that total DM costs incurred for the jobs worets he knew about at the 20 e. At the beginning of the year, Paul's budgeted M cod for the prict he kad used diet the time Were 5790,00. Determin the year, Bud but o D. notil have been if pied MUs for this matanial cost as the cost driver. Fume, the budgeted Motor and under- or overapplied Moe for this scenario. d. Which ost driver wosting system, Masonal use going forward? Why?