Fab Furniture has two manufacturing departments--Cutting and Finishing. It considers all of its manufacturing overhead costs to be fixed costs. The overhead estimates for the year and for one job (Order #75675) completed during the year are shown below.

Estimated Data	Cutting		Finishing		Total
Manufacturing overhead costs	$	6,210,000	$	6,750,000	$	12,960,000
Direct labor-hours		135,000		81,000		216,000
Machine-hours		54,000		270,000		324,000

Order # 75675	Cutting	Finishing	Total
Direct labor-hours	28	20	48
Machine-hours	20	23	43

Required:

1. Calculate the predetermined overhead rate and the amount of manufacturing overhead applied to Order #75675 assuming Fab Furniture uses a plantwide predetermined overhead rate based on direct labor hours.

2. Fab Furniture is considering using departmental predetermined overhead rates with direct labor-hours as the allocation base in Cutting and machine-hours as the allocation base in Finishing. Calculate the predetermined overhead rate for each department and the manufacturing overhead applied to Order #75675 using departmental rates.

(Round your intermediate calculation to 2 decimal places.)

3. Do you recommend that Fab Furniture use a plantwide overhead rate or departmental overhead rates? Why?