Dan's Custom Cabinets makes stereo cabinets for new homes and remodeling jobs. Dan crafts each cabinet to fit special places and uses solid wood throughout, making his cab- inets of much higher quality than can be bought in the normal cabinet market. The labor, machine hours, and assembly hours for the three departments as well as the overhead incurred in each department used to make the cabinets are in the table below. 3. JOB ORDER COSTING: PLANT-WIDE VS. DEPARTMENTAL OVERHEAD RATES. DOMAIN Dan's Custom Cabinets Cutting Dept. Stain and Paint Overhead $24,000 Assembly General Plant $100,000 $60,000 $36,000 Direct labor hours 4,000 8,000 6,000 Machine hours 6,000 2,000 N/A 2,000 N/A Assembly hours 2,000 4,000 10,000 NJA Fach cabinet requires a different amount of work in each department. For three cabi- net orders, the following are the details: Job 408 Job 409 Job 410 Materials $300 $500 $750 Direct labor $120 $250 $375 Direct labor hours-Cutting 2 4 Direct labor hours-Stain and Paint 3 4 9. Direct labot hours-Assembly 3 Machine hours-Cutting 2 Machine hours-Stain and Paint 2. 3 Machine hours-Assembly Assembly hours-Cutting 1. Assembly hours-Stain and Paint 2 1. Assembly hours-Assembly 3 26 d. What does it cost to make each product? Continue to charge your direct labor cost to the product. These calculations only affect overhead. Machine hours a used for overhead allocation. e. Next, do the following: Charge general overhead on direct labor hours, Cuttinel overhead on machine hours, Stain and Paint's overhead on direct labor houre and Assembly's overhead on assembly hours. Be careful here. You want to choose only one driver for each department. Direct labor costs continue to be charged out on direct labor hours. f. Recompute your job order costs using these new departmental rates. g. Compare the costs you have computed. Which method appears to be best? Why?