Evan's Fine Furnishings manufactures upscale custom fumiture. Evan's currently uses a plantwide overhead rate based on direct labor hours to allocate its 51.450,000 of manufacturing overhead to individual jobs. However, Donna Donaldson, owner and CEO is considering refining the company's costing system by using departmental overhead raten. Currently, the Machining Department incurs $730,000 of manufacturing overbond while the Finishing Department incurs $720,000 of manufacturing overhead. Donaldson has identitled 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) Rond the facultamari Requirement 1. Compute the plantwide overhead rate assuming that Evan's expects to incur 25,000 tot D. hours during the year Fint identify the formula, then compute the rate (Round your answer to the nearest whole dollar) Pianwide overhead rate Requirements 1. Compute the plantwide overhead rate assuming that Evan's expects to incur 25,000 total DL hours during the year. 2. Compute departmental overhead rates assuming that Evan's expects to incur 14,600 MH in the Machining Department and 16,000 DL hours in the Finishing Department during the year. 3. If Evan's continues to the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? 4. If Evan'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 Evan's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. lo The Evan's plant completed Jobs 450 and 455 on May 15. Both jobs incurred a total of 6 DL hours throughout the entire production process. Job 450 incurred 3 MH in the Machining Department and 5 DL hours in the Finishing Department (the other DL hour occurred in the Machining Department). Job 455 incurred 7 MH in the Machining Department and 4 DL hours in the Finishing Department (the other two DL hours occurred in the Machining Department). co Requirement 1. Compute the plantwide overhead rate assuming that E First identify the formula, then compute the rate. (Round your answer to Cost allocation base (estimated) Total assets Total liabilities Total manufacturing overhead Total owners' equity Total revenues