1) Shotsky Enterprises allocates MOH based on direct labor hours. If MOH isoverapplied, the most likely reason is that _____________.

the actual direct labor hours worked exceeded the budgeted direct labor hours

budgeted direct labor hours exceeded actual direct labor hours worked

Actual MOH costs exceeded budgeted total MOH costs

Cost of direct materials used exceeded budgeted direct material costs.

2) Meger Manufacturing uses direct labor cost as the allocation base for applying MOH to WIP.

The budgeted direct labor cost for the year was $1,000,000. The budgeted manufacturing overhead was $800,000.

Actual direct labor cost for the year was $1,100,000. Actual manufacturing overhead was $825,000.

What was Meger's predetermined factory overhead rate per direct labor dollar?

(Use commas, no $ signs, two decimals. For example: 1.8 would be entered 1.80; .4 would be entered .40.)