Plantwide versus Departmental Rates : Refer to the facts in exercises 5-11 and 5-13.

Required:

a. Assume the company uses just one basis for applying overhead to jobs going through both Pl and P2: labor-hours. How much of the service department costs would be allocated to Job 10 and to Job 11? Why is this different than the amount applied to each job that was computed in exercise 5-13?

b. How would your answer to requirement

(a) change if the company had used only machine-hours in allocating costs to Job 10 and Job 11?