(Departmental overhead rates) Chalmette Company uses a normal cost, job order costing system. In the Mixing Department, overhead is applied using machine hours; in Paving, overhead is applied using direct labot hours. In December 2005, the company estimated the following data for its two de¬ partments for 2006:

a. Compute the predetermined overhead rate for each department of Chal mette Company.

b. Job #116 was started and completed during March 2006. The job cost sheet shows the following information:

Compute the overhead applied to Job #116 for each department and in total, c.If the company had computed a companywide overhead rate rather than departmental rates, would such a rate have indicated the actual over¬ head cost of each job? Explain.LO1.

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Direct labor hours. Machine hours Budgeted overhead cost Mixing Department Paving Department 3,000 15,000 $120,000 7,000 3,000 $196,000