1. Robillard Products manufactures its products in two separate departments: machining and assembly. Total manufacturing overhead costs for the year are budgeted at $1.04 million. Of this amount, the Machining Department incurs $600 Print (primarily for machine operation and depreciation) while the Assembly Department incurs $440,000. Robillard Products estimates it will incur 5,000 machine hours (all in the Machining Department) and 16,500 direct labour hours (2,500. Machining Department and 14,000 in the Assembly Department) during the year. Robillard Products currently uses a plantwide overhead rate based on direct labour hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department would allocate its overhead using direct labour (DL) hours. The following chart shows the machine hours (MH) and direct labour (DL) hours incurred by Jobs 500 and 501 in each production department: (Click the icon to view the machine hours and direct labour hours incurred by each department.) Both Jobs 500 and 501 used $2,400 of direct materials. Wages and benefits total $15 per direct labour hour. Robillard Products prices its products at 150% of total manufacturing costs. Requirements Requirement 1. Compute Robillard Products' current plantwide overhead rate. Begin by determining the formula, then compute the rate. (Round your answer to the nearest whole dollar.) Total manufacturing overhead Total direct labour hours Plantwide overhead rate $ 1,040,000 / 16,500 $ 63 per DL hour Requirement 2. Compute refined departmental overhead rates. Determining the formula, then compute the rate. (Round your answers to the nearest dollar.) Department overhead cost / Department allocation base = Department allocation rate Machining 600000 5000 120 /machine hour IDL hour Assembly Requirement 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. (1) of the company's resources. the other. Job 500 uses (2) Job 501. (3) machine hours than the other job. The accounting system should show that one job actually (4) . Requirement 4. Compute the total amount of overhead allocated to each job if Robillard Products uses its current plantwide overhead rate. Job 500 Job 501 Total direct labour hours * x Plantwide allocation rate Overhead allocation Requirement 5. Compute the total amount of overhead allocated to each job if Robillard Products uses departmental overhead rates. Job 500 Job 501 Overhead allocation - Machining Department Requirement 7. Compute the total manufacturing cost and sales price of each job using Robillard Products' current plantwide overhead rate. (Round amounts to the nearest dollar. Enter the percentage as a whole number.) Job 500 Job 501 Direct materials Direct labour Manufacturing overhead Total manufacturing costs Markup for pricing (%) Sales price Requirement 8. Based on the current (plantwide) allocation system, how much profit did Robillard Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7, hown profit did it really earn on each job? Calculate the gross profit using the current costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit/ (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did the company really earn on each job? Calculate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses.) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labour Manufacturing overhead Gross profit/ (loss) Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Robillard believes that (9) When utilizing a refined costing method, Robillard realizes that (10) Sales price Print Requirement 8. Based on the current (plantwide) allocation system, how much profit did Robillard Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did it really earn on each job? Calculate the gross profit using the current costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit/ (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did the company really earn on each job? Calculate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses.) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labour Manufacturing overhead Gross profit/ (loss) Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Robillard believes that (9) When utilizing a refined costing method, Robillard realizes that (10) 1: Data Table Machining Department Job 500....10 MH Assembly Department 11 DL hours 3 DL hours Job 501.... 20 MH 11 DL hours 3 DL hours 1. Robillard Products manufactures its products in two separate departments: machining and assembly. Total manufacturing overhead costs for the year are budgeted at $1.04 million. Of this amount, the Machining Department incurs $600 Print (primarily for machine operation and depreciation) while the Assembly Department incurs $440,000. Robillard Products estimates it will incur 5,000 machine hours (all in the Machining Department) and 16,500 direct labour hours (2,500. Machining Department and 14,000 in the Assembly Department) during the year. Robillard Products currently uses a plantwide overhead rate based on direct labour hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department would allocate its overhead using direct labour (DL) hours. The following chart shows the machine hours (MH) and direct labour (DL) hours incurred by Jobs 500 and 501 in each production department: (Click the icon to view the machine hours and direct labour hours incurred by each department.) Both Jobs 500 and 501 used $2,400 of direct materials. Wages and benefits total $15 per direct labour hour. Robillard Products prices its products at 150% of total manufacturing costs. Requirements Requirement 1. Compute Robillard Products' current plantwide overhead rate. Begin by determining the formula, then compute the rate. (Round your answer to the nearest whole dollar.) Total manufacturing overhead Total direct labour hours Plantwide overhead rate $ 1,040,000 / 16,500 $ 63 per DL hour Requirement 2. Compute refined departmental overhead rates. Determining the formula, then compute the rate. (Round your answers to the nearest dollar.) Department overhead cost / Department allocation base = Department allocation rate Machining 600000 5000 120 /machine hour IDL hour Assembly Requirement 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. (1) of the company's resources. the other. Job 500 uses (2) Job 501. (3) machine hours than the other job. The accounting system should show that one job actually (4) . Requirement 4. Compute the total amount of overhead allocated to each job if Robillard Products uses its current plantwide overhead rate. Job 500 Job 501 Total direct labour hours * x Plantwide allocation rate Overhead allocation Requirement 5. Compute the total amount of overhead allocated to each job if Robillard Products uses departmental overhead rates. Job 500 Job 501 Overhead allocation - Machining Department Requirement 7. Compute the total manufacturing cost and sales price of each job using Robillard Products' current plantwide overhead rate. (Round amounts to the nearest dollar. Enter the percentage as a whole number.) Job 500 Job 501 Direct materials Direct labour Manufacturing overhead Total manufacturing costs Markup for pricing (%) Sales price Requirement 8. Based on the current (plantwide) allocation system, how much profit did Robillard Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7, hown profit did it really earn on each job? Calculate the gross profit using the current costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit/ (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did the company really earn on each job? Calculate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses.) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labour Manufacturing overhead Gross profit/ (loss) Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Robillard believes that (9) When utilizing a refined costing method, Robillard realizes that (10) Sales price Print Requirement 8. Based on the current (plantwide) allocation system, how much profit did Robillard Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did it really earn on each job? Calculate the gross profit using the current costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit/ (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7. how much profit did the company really earn on each job? Calculate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses.) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labour Manufacturing overhead Gross profit/ (loss) Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Robillard believes that (9) When utilizing a refined costing method, Robillard realizes that (10) 1: Data Table Machining Department Job 500....10 MH Assembly Department 11 DL hours 3 DL hours Job 501.... 20 MH 11 DL hours 3 DL hours