Flash Industries - Analyzing Indirect Costs (30 points) Flash Industries, a small business firm, produces raincoats and overcoats for commercial sale and for the Government. Most items are manufactured for specific customer orders. At the beginning of the year, the comptroller estimated costs and production hours for operations throughout the year. Note that Department A is more labor intensive and Department B is more automated. Plant Total $361,500 $428,000 Direct Material Cost Direct Labor Cost Department Overhead Cost Direct Labor Hours Machine Hours Department $338,000 $318,000 $276,000 30,000 2,000 Department B $23,500 $110,000 $480,000 10,000 $756,000 40,000 40,000 42,000 619-16-1 3. At the end of the year, the Comptroller accumulated the total actual costs and hours incurred by Department A and Department B during the year for the company. Using the information provided below, calculate the final overhead rates for both departments Department A Plant Total 5362.000 $459.400 Department B $25,000 599,000 5337,000 $360,400 $299,000 Direct Material Cost Direct Labor Cost Department Overhead Cost Direct Labor Hours Machine Hours $495,000 9,000 $794,000 43,000 34.000 41,000 42,000 1,000 Department A: per direct labor hour Department B: per machine hour 4. Why are the rates that you developed in Question 3 different than the rates developed in Question 1? 5. Given the actual costs stated above in Question 2, what would be the final cost of Job #123 using the overhead rates determined in Question 3? Actual Cost Summary for Job #123 Department Department B Cost Element Total Direct Material Direct Labor Factory Overhead Total Cost 6. How would changes in the overhead rates affect profit on Job #1237