Elfie Enterprises Uses Three Cost Pools to Allocate Manufacturing Overhead

Elfie Enterprises uses three cost pools to allocate manufacturing overhead costs.The following estimates were provided for the coming year.

The accounting records show the Lacio Job consumed the following resources.

Required:
a. If direct labor hours are considered the only manufacturing overhead cost driver,compute:
1.the single cost driver rate for Elfie Enterprises; and
2.the amount of manufacturing overhead costs allocated to the Lacio job.
b. If Elfie Enterprises uses the three cost pools to allocate manufacturing overhead costs,compute:
1.the cost driver rate for each of the three overhead activities above; and
2.the amount of manufacturing overhead costs allocated to the Lacio job.
c. Review the amount of manufacturing overhead costs allocated in (a2)and (b2).Why do the two estimates differ? Which method of allocation probably best estimates the actual manufacturing overhead costs used? Why?.