Departmental Overhead Rates Mariposa, Inc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Harry Whipple, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than can plantwide rate. Mariposa has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) $576,000 $144,000 Normal activity (machine hours) 120,000 60,000 Required: 1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. per machine hour 2. Compute predetermined overhead rates for each department using machine hours. Round your answers to one decimal place. Department A per machine hour Department B per machine hour 3. Suppose that a machine tool (Product X75) used 60 machine hours from Department A and 140 machine hours from Department B. A second machine tool (Product Y15) used 140 machine hours from Department A and 60 machine hours from Department B. Compute the overhead cost assigned to each product using the plantwide rate computed in Requirement 1. Product X75 Product Y15 Plantwide: Repeat the computation using the departmental rates found in Requirement 2. Product X75 Product Y15 Departmental: Which of the two approaches gives the fairest assignment? 4. Repeat Requirement 3 assuming the expected overhead cost for Department B is $288,000. Product X75 Product Y15 Plantwide: $ Departmental: $ Would you recommend departmental rates over a plantwide rate