1.7. All of a company's manufacturing overhead costs are considered to be fixed costs. The company has two departments and the overhead estimates for the year and for one job (Order #5113) completed during the year are in the following tables.

Estimated Data	Assembly		Finishing		Total
Manufacturing overhead costs	$	4,370,000	$	4,830,000	$	9,200,000
Direct labor-hours		115,000		69,000		184,000
Machine-hours		46,000		230,000		276,000

Order # 5113	Asssembly	Finishing	Total
Direct labor-hours	24	16	40
Machine-hours	16	19	35

Required:

1. Assume the company uses a plantwide predetermined overhead rate based on direct labor hours. Compute the predetermined overhead rate and the amount of manufacturing overhead applied to Order #5113.

2. Compute the predetermined overhead rates for each department and the manufacturing overhead applied to Order #5113 if the company uses departmental predetermined overhead rates. Use direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Finishing.

(Round your intermediate calculation to 2 decimal places.)

D. Which method to assign overhead do you recommend and why?

1. Plantwide predetermined overhead rate Plantwide manufacturing overhead applied to Order #5112 2. Assembly Department predetermined overhead rate Manufacturing overhead applied from Assembly to Order #5112 Finishing Department predetermined overhead rate Manufacturing overhead applied from Finishing to Order #5112 Total departmental manufacturing overhead applied to Order #5112