= Heading 6 Normal No Spacing Heading 1 Case 1 Martinez Building Pty Ltd is one of the largest manufacturers and marketers of unique, custom-made residential garage doors in Sydney, Australia. It also is a major supplier of industrial and commercial doors, grills and counter shutters for the new-construction, repair and remodel markets. Martinez Building Pty Ltd has developed plans for continued expansion of a new network of services operations that sell, install and service manufactured fireplaces, garage doors and related products. Martinez Building Pty Ltd job order cost and applies overhead to production on the basis of direct labour, cost. In computing a predetermined overhead rate for the year 2021, the company estimated manufacturing overhead to be $24,000,000 and direct labour cost to be $20,000,000. In addition, it developed the following information Actual Costs Incurred During 2021 . Direct materials used $ 30,000,000 Direct labour cost incurred $ 21,000,000 Insurance, factory $ 500,000 . Indirect labour $ 7,500,000 Factory maintenance $ 1,000,000 Rent on factory building $ 11,000,000 . Depreciation on factory equipment $ 2,000,000 Instructions Answer each of the following a) Why is Martinez Building Pty Ltd using a job order cost system? b) On what basis does Martinez Building Pty Ltd allocate its manufacturing overhead? Compute the predetermined overhead rate for 2021.| I c) Compute the amount of the under- or overapplied overhead for 2021