Departmental Overhead Rates Lansing, Inc., provided the following data for its two producing departments: Molding Total Polishing $60,000 Estimated overhead $400,000 $460,000 Direct labor hours (expected and actual): Form A 1,000 5,000 6,000 Form B 4,000 15,000 19,000 Total 5,000 20,000 25,000 Machine hours: Form A 3,400 3,000 6,400 Form B 1,600 2,000 3,600 Total 5,000 5,000 10,000 Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 20,000 units of Form A produced and sold and 50,000 of , Form B. Required: 1. Calculate the overhead rates for each department. Molding $ 80 per machine hour 3 per direct labor hour Polishing sl 2. Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit. Round your answers to the nearest cent. Unit Overhead Cost Assigned unit overhead cost for Form A per unit Assigned unit overhead cost for Form B per unit How does this compare with the plantwide rate unit cost, using direct labor hours? Relative to the plantwide rate, the cost increased for Form A and decreased for Form B. 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates. Round your answers to the nearest cent. Unit Overhead Cost Form A per unit Form B per unit Compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome? Relative to the plantwide rate, the cost increased for Form A and decreased for Form B