E5-21 (similar to) parts. In 2017, actual variable manufacturing overhead is $318,000. RC's simple costing system alocates variable based on full costs. One of its customers has Roadster (RC) designs and ts t and prices its Bailey realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main resources design, production, and engineering. Interviews with the department personnel and examination of time records yield the following EE (Click the icon to view the information) Requirement 1. Compute the manufacturing overhead allocated to each customer in 2017 using the simple costing system that uses machine-hours as the allocation base overhead using the simple costing method and then calculate RC's manufacturing overhead rate for 2017, (Round your answer to the per machine hour from any list or enter any number in the input fields and then click Check Answer. Data Table ns a hree con rhea Usage of Cost Drivers by Customer Contract nforr United Hamlet Lowell Manufacturing Auto Motors Cost Driver Department Overhead in 2017 Motors 38,000 83 115 202 CAD-design-hours $ man Design to ca Engineering Engineering-hours 237 30,000 85 78 250,000 1,480 220 3,300 Production Machine-hours 318,000 Total Print Done i Requirements Compute the manufacturing overhead allocated to each customer in 2017 using the simple costing system that uses machine-hours as the allocation base. 1. Compute the manufacturing overhead allocated to each customer in 2017 using department-based manufacturing overhead rates. Comment on your answers in requirements 1 and 2. Which customer do you think was complaining about being overcharged in the simple system? If the new department-based rates are used to price contracts, which customer(s) will be unhappy? How would you respond to these concerns? 2. 3. 4. How else might RC use the information available from its department-by-department analysis of manufacturing overhead costs? 5. RC's managers are wondering if they should further refine the department-by-department costing system into an ABC system by identifying different activities within each department. Under what conditions would it not be worthwhile to further refine the department costing system into an ABC system