Which job$$ uses more of the company's resources? Explain. 

 

$4.$

 

Compute the total amount of overhead allocated to each job if Southwick Products uses its current plantwide overhead rate.

 

$5.$

 

Compute the total amount of overhead allocated to each job if Southwick Products uses departmental overhead rates.

 

$6.$

 

 Do both allocation systems accurately reflect the resources that each job used? Explain. 

 

$7.$

 

 Compute the total manufacturing cost and sales price of each job using Southwick Products$\text{'}$ current plantwide overhead rate. 

 

$8.$

 

 Based on the current$($plantwide$)$ allocation system, how much profit did Southwick Products think it earned on each job? Based on the departmental overhead rates and the sales price determined in Requirement$7,$ how much profit did it really earn on each job? 

 

$9.$

 

 Compare and comment on the results you obtained in Requirements $7$ and $8.$