Cregg's Fine Furnishings manufactures upscale custom furniture. Cregg's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,300,000 of manufacturing overhead to individual jobs. However, Debra Fuller, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Finishing Department incurs $540,000 of manufacturing overhead. Fuller 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. (Click the icon to view the job information.) Read the requirements. Requirement 1. Compute the plantwide overhead rate assuming that Cregg's expects to incur 25,000 total DL hours during the year. First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar.) Requirements Plantwide overhead rate Requirement 2. Compute departmental overhead rates assuming that Cregg's expects to incur 15,200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year. First identify the formula, then compute the rate for each department. (Round your answers to the nearest whole dollar.) Departmental overhead rate per mach. hour per DL hour Machining Finishing Requirement 3. If Cregg's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? First identify the formula, then calculate the amount of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to the nearest whole dollar.) 1. Compute the plantwide overhead rate assuming that Cregg's expects to incur 25,000 total DL hours during the year. 2. Compute departmental overhead rates assuming that Cregg's expects to incur 15,200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year. 3. If Cregg's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? 4. If Cregg's uses departmental overhead rates, how much manufacturing overhead would be allocated to Job 450 and Job 455? 5. Based on your answers to Requirements 3 and 4, does the plantwide overhead rate overcost or undercost either job? Explain. If Cregg's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. Print Done Job 450 Job 455 x x Manufacturing overhead allocated Requirement 4. If Cregg's uses departmental overhead rates, how much manufacturing overhead 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.) Machining Finishing Job 450 Job 455 Total overhead allocation Requirement 5. Based on your answers to Requirements 3 and 4, does the plantwide overhead rate overcost or undercost either job? Explain. If Cregg's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. The single plantwide rate Job 450 by and Job 455 by Since Cread's cate its cales price at 125% of cost and the inh cost is by the allocation evetom it uses its sales price wzill by the allocation evetom it uses. Cregg's Fine Furnishings manufactures upscale custom furniture. Cregg's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,300,000 of manufacturing overhead to individual jobs. However, Debra Fuller, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Finishing Department incurs $540,000 of manufacturing overhead. Fuller 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. (Click the icon to view the job information.) Read the requirements. Requirement 1. Compute the plantwide overhead rate assuming that Cregg's expects to incur 25,000 total DL hours during the year. First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar.) = Plantwide overhead rate R Cost allocation base (estimated) F d rates assuming that Cregg's expects to incur 15,200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year. or each department. (Round your answers to the nearest whole dollar.) Total assets Departmental Total liabilities overhead rate per mach. hour F Total manufacturing overhead + per DL hour R Total owners' equity F Total revenues Job 450 Job 455 lantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? nt of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to the nearest whole dollar.) x x Manufacturing overhead = allocated Requirement 4. If Cregg's uses departmental overhead rates, how much manufacturing overhead 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.) Machining Finishing Job 450 Job 455 More info The Cregg's plant completed Jobs 450 and 455 on May 15. Both jobs incurred a total of 6 DL hours throughout the entire production process. Job 450 incurred 2 MH in the Machining Department and 5 DL hours in the Finishing Department (the other DL hour occurred in the Machining Department). Job 455 incurred 4 MH in the Machining Department and 4 DL hours in the Finishing Department (the other two DL hours occurred in the Machining Department). Print Done Total overhead allocation Requirement 5. Based on your answers to Requirements 3 and 4, does the plantwide overhead rate overcost or undercost either job? Explain. If Cregg's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. The single plantwide rate Job 450 by and Job 455 by Since Crega's cote its cales price at 125% of coct and the inh cost in by the allocation evetem it uses its cales price will by the allocation evetem it us Cregg's Fine Furnishings manufactures upscale custom furniture. Cregg's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,300,000 of manufacturing overhead to individual jobs. However, Debra Fuller, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Finishing Department incurs $540,000 of manufacturing overhead. Fuller 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. (Click the icon to view the job information.) Read the requirements. Requirement 1. Compute the plantwide overhead rate assuming that Cregg's expects to incur 25,000 total DL hours during the year. First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar.) Plantwide overhead rate Requirement 2. Compute departmental overhead rates assuming that Cregg's expects to incur 15,200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year. First identify the formula, then compute the rate for each department. (Round your answers to the nearest whole dollar.) + Departmental overhead rate Machining Finishing per mach. hour per DL hour Cost allocation base (estimated) Requirement 3. If First identify the for Total assets d rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? Total department overhead ng overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to the nearest whole dollar.) Manufacturing overhead allocated Total hours Job 450 Job 455 Total liabilities Requirement 4. If much manufacturing overhead would be allocated to Job 450 and Job 455? Total owners' equity Use the following t verhead that would be allocated to the jobs if the departmental overhead rates are used. (Round your answers to the nearest whole dollar.) Total plantwide overhead Machining Finishing Total revenues Total overhead allocation Requirement 5. Based on your answers to Requirements 3 and 4, does the plantwide overhead rate overcost or undercost either job? Explain. If Cregg's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. The single plantwide rate Job 450 by and Job 455 by Since Crega's cote its cales price at 125% of cost and the inh cost in by the allocation evetom it uses ite cales price will by the allocation evetom it uses Cregg's Fine Furnishings manufactures upscale custom furniture. Cregg's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,300,000 of manufacturing overhead to individual jobs. However, Debra Fuller, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Finishing Department incurs $540,000 of manufacturing overhead. Fuller 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. (Click the icon to view the job information.) Read the requirements. Requirement 1. Compute the plantwide overhead rate assuming that Cregg's expects to incur 25,000 total DL hours during the year. First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar.) + Plantwide overhead rate Requirement 2. Compute departmental overhead rates assuming that Cregg's expects to incur 15,200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year. First identify the formula, then compute the rate for each department. (Round your answers to the nearest whole dollar.) Machining Finishing = Departmental overhead rate per mach. hour per DL hour Requirement 3. If Cregg's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? First identify the formula, then calculate the amount of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to the nearest whole dollar.) Manufacturing overhead Job 450 Job 455 x allocated Requirement 4. If Cregg's uses departmental overhead rates, how much manufacturing overhead 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 overcosts Total overhead allocation Requirement 5. Based on yo undercosts ements 3 and 4, does the plantwide overhead rate overcost or undercost either job? Explain. If Cregg's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. The single plantwide rate Job 450 by and Job 455 by Since Cregg's sets its sales price at 125% of cost, and the job cost is by the allocation system it uses, its sales price will by the allocation system it uses. Cregg's Fine Furnishings manufactures upscale custom furniture. Cregg's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,300,000 of manufacturing overhead to individual jobs. However, Debra Fuller, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Finishing Department incurs $540,000 of manufacturing overhead. Fuller 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. (Click the icon to view the job information.) Read the requirements. Requirement 1. Compute the plantwide overhead rate assuming that Cregg's expects to incur 25,000 total DL hours during the year. First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar.) Plantwide overhead rate Requirement 2. Compute departmental overhead rates assuming that Cregg's expects to incur 15,200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year. First identify the formula, then compute the rate for each department. (Round your answers to the nearest whole dollar.) Machining Finishing Departmental overhead rate per mach. hour per DL hour Requirement 3. If Cregg's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? First identify the formula, then calculate the amount of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to the nearest whole dollar.) Manufacturing overhead Job 450 Job 455 x x x allocated Requirement 4. If Cregg's uses departmental overhead rates, how much manufacturing overhead 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.) Machining Finishing Total overhead allocation Job 450 Job 455 affected Requirement 5. Based on your answers to Requirements 3 and 4, do ad rate overcost or undercost either job? Explain. If Cregg's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. not affected The single plantwide rate Job 450 by an 455 by Since Cregg's sets its sales price at 125% of cost, and the job cost is by the allocation system it uses, its sales price will by the allocation system it uses.