Chingy PLC manufactures custom basketball jerseys for professional basketball teams. The firm uses two departments to manufacture these jerseys: the Cutting Department and the Sewing Department.

The firm assigns direct material costs and direct labor costs directly to each team's order. All other costs, such as depreciation of factory equipment, factory utilities, supervisor salaries, etc. are treated as overhead costs that cannot be directly traced to team orders and are assigned to each order using a predetermined overhead rate. Currently, Chingy

uses one single plantwide predetermined overhead rate, based on direct labor hours (DLh) to assign overhead costs to team orders.

As an alternative, the accountant for Chingy has proposed using two predetermined overhead rates to assign overhead costs to team orders: the Cutting Department, which is more automated, would use Machine Hours (Mh) to assign overhead costs to orders. The Sewing Department, would use Direct Labor hours (DLh) to assign overhead costs to orders.

The first set of data shown below is based on estimates that were made at the beginning of 2022 for the expected total output for the firm during the year. The second set of data shown below relates to one specific team order that was started, completed, and sold during 2022: the jersey order for the champaign cheetah basketball team.

Allocation of OH Costs - Chingy; Part A

Use the information provided above for ChingyLTD, Assuming Chingu sticks with their current system and only uses one predetermined overhead rate based on direct labor hours (DLh), calculate the amount of overhead costs that would be applied to the champaign cheetah basketball team order. Please enter your answer in whole dollars.

Allocation of OH Costs - Chingy.; Part B

Use the information provided above for Chingy, Assuming Chingy follows their accountant's suggestion and calculates two overhead rates (using Machine Hours for the Cutting Department and Direct Labor hours for the Sewing Department), calculate the amount of overhead costs that would be applied to the champaign cheetah basketball teamorder. Please enter your answer in whole dollars.

Champaign Cheetah order: Cutting Sewing Total Department Department Direct $240 $30 $270 materials Direct $30 $345 $375 labor Actual Direct Labor 3 21 24 hours (DLh) used Actual Machine hours 5 1 6 (Mh) usedCutting Sewing Total Department Department Estimated total Direct Labor 12,000 51,000 63,000 hours (DLh) Estimated total Machine hours 19,500 3,900 23,400 (Mh) Estimated $150,000 Variable OH $259,000 $409,000 Estimated Fixed $825,000 $404,000 $1,229,000 OH