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E4-19A (Similatoj Test Allen's Fine Funishings manufactures upscale custom furniture. Allen's currently uses a plantwide overhead rate based on direct labor hours to allocate its

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E4-19A (Similatoj Test Allen's Fine Funishings manufactures upscale custom furniture. Allen's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,250,000 of manufacturing overhead to individual jobs. However, Dana Johnson, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $770,000 of manufacturing overhead while the Finishing Department incurs $480,000 of manufacturing overhead. Dana 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 cequirements Requirement 1. Compute the plantwide overhead rate assuming that Allen's expects to incur 31,250 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 i Requirements 1. Compute the plantwide overhead rate assuming that Allen's expects to incur 31,250 total DL hours during the year. 2. Compute departmental overhead rates assuming that Allen's expects to incur 15,400 MH in the Machining Department and 16,000 DL hours in the Finishing Department during the year. 3. If Allen's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? th 4. If Allen'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 Allen's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. Print Done p-do rate. (Round your answer to the nearest whole dollar.) Plantwide overhead rate Cost allocation base (estimated) Total assets Total liabilities en Total manufacturing overhead Total owners' equity ear All Total revenues

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