Departmental Overhead Rates Mariposa, Inc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Alice Chen, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than can a plantwide rate. Mariposa has the following data for its two departments for the coming year: 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. Department A per machine hour Depsrtment B per machine hour 3. Suppose that a machine tool (Product X75) used 60 machine hours from Department A and 150 machine hours from Department B, A second machine tool (Product Y15) used 150 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. Repeat the computation using the departmental rates found in Requirement 2. Which of the two approeches gives the falrest assignment? 4. Repeat Requirement 3 assuming the expected overhead cost for Department B is 5360,000 . Would you recommend departmental rates over a plantwide rate