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 #5112) completed during the year are in the following tables.

Estimated Data	Assembly		Finishing		Total
Manufacturing overhead costs	$	7,800,000	$	8,400,000	$	16,200,000
Direct labor-hours		150,000		90,000		240,000
Machine-hours		60,000		300,000		360,000

Order # 5112	Asssembly	Finishing	Total
Direct labor-hours	31	23	54
Machine-hours	23	26	49

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 #5112.

2. Compute the predetermined overhead rates for each department and the manufacturing overhead applied to Order #5112 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.)

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