Bergeron's Fine Furnishings manufactures upscale custom furniture. Bergeron's currently uses a plantwide overhead rate based on direct labor hours to allocate its $ 1 comma 290 comma 000 of manufacturing overhead to individual jobs. However, Diedra Cermak , owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $ 870 comma 000 of manufacturing overhead while the Finishing Department incurs $ 420 comma 000 of manufacturing overhead. Diedra has identified machine hours (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishing Department.

Requirement 4. If Bergeron's uses departmental overhead rates, how much manufacturing overnead would be allocated to Job 450 and Job 455? Use the following table to calculate the amount of manufacturing overhead that would be allocated to the jobs if the departmental overhead rates are used. (Round your answers to the nearest whole dollar. Job 450 Job 455 Machining Finishing Total overhead allocation Requirement 5. Based on your answers o Requirements 3 and 4, does the plant de overhead rate overcost or undercoat either ob? Explain f Bergeron's sells s umiture at 125% o cost, wil its choce o allocation systems affect product pricing? Explain The single plantwide rate overcosts Job 450 by S and underoosts Job 455 by S Since Bergeron's sets its sales price at 125% of cost, and the job oost is affected by the allocation system it uses, its sales price will be affected by the allocation system it uses