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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

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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 Manufacturing overhead costs Direct labor-hours Machine-hours Assembly $ 1,650,000 75,000 30,000 Finishing Total $ 1,950,000 $3,600,000 45,000 120,000 150,000 180,000 Order # 5112 Direct labor-hours Machine-hours Asssembly Finishing 16 8 11 Total 24 19 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.) 1. Plantwide predetermined overhead rate Plantwide manufacturing overhead applied to Order 15112 2 Assembly Department predetermined overhead rate Manufacturing overhead applied from Assembly to Order 05112 Finishing Department predetermined overhead rate Manufacturing overhead applied from Finishing to Order #5112 Total departmental manufacturing overhead applied to Order #5112 3. Which method to assign overhead do you recommend and why

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