Farmer's Fine Furnishings manulactures upscale custom furniture. Farmer's currently uses a plantwide ovechead rate based on direct labor hours to allocale its $1,250,000 of manutachuring overhead to individual jobs. However, Debra Able, owner and CEO, is considering refining tho comparty's costing syatem by using departmental overhead rates. Curtently, the Machining Department incurs $770,000 of manufacturing overhead while the Finishing Departinent incurs $480.000 of manufacturing averhead. Abie has idendfied machine hours (MH) as the primary manufacturing overtiead cast driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishing Department. (Cuck the ioch ta view the (ob inlocmation.) Read the teauremats Requirement 1. Compuae the piantwide overbead rate assuming that Farmer's expects to incur 31,250 total DL hours during the year First kentify the formula, then compute the rate. (Found your answer to the neatest whole dollar) Requirement 2. Compute departenental ovortead rates assuming that Farmer's expects to incur 15,400 MH in the Mactining Departnsent and t6. a00 DL. hougs in the Finishing Department duting the yeat. and direct labor (DL) hours as the primary cost driver in the Finishing Department. (Cbck the icon to view the job informationi) Read the requliements Requirement 2. Compute departmental overhead rates assuming that Farmer's expects to incur 15,400MH in the Machining Department and 16,000 DL. hours in the Finishing Department during the year. First identify the formula, then compute the tate for each department. (Round your answers to the nearest whole doliar.) Requirements 1. Compute the plantwide overhead rate assuming that Farmer's expects to incur 31,250 total DL hours during the year. 2. Compute departmental overhead rates assuming that Farmer's expects to incur 15,400MH in the Machining Department and 16,000 DL hours in the Finishing Department during the year. 3. If Farmer's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455 ? 4. If Farmer'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 Farmer's sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain. More info The Farmer's plant completed Jobs 450 and 455 on May 15. Both jobs incurred a total of 5DL hours throughout the entire production process. Job 450 incurred 3MH in the Machining Department and 4DL hours in the Finishing Department (the other DL hour occurred in the Machining Department). Job 455 incurred 7MH in the Machining Department and 3DL hours in the Finishing Department (the other two DL hours occurred in the Machinina Denartment)