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Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal fob-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments tran a plantwide rate can offer. Xaria has the following data for its two departments for the coming year Department A Department Overhead costs expected $100,000 $50,000 Normal activity (machine hours) 16,000 6.800 Required: 1. Compute a predetermined overhead rate for the plant as a whole based on machine bours. Round your answer to two decimal places 7.02 per machine hour 2. Compute predetermined overhead rates for each department using maching hours, (Note: Round to two decimal places, il necessary.) Department 6.25 per machine hou Department 3.82 per machine hour 3. Conceptual Connection: 3ob 73 used 20 machine hours from Department A and so machine hours from Department B. Job 74 used 50 machine hours from Department A and 20 machine hours from Department a Compute the overhead cost assigned to each job using the plantwiderate computed in Requirement 1. Repeat the computation using the departmental rates found in Requirement 2. Round final answers to the nearest cent, if necessary. Job 73 Job 74 5 Plantwide X $ 5 Department X Which of the two approaches gives the fairer assignment? Departmental rates 4. Conceptual Connection: Repeat Requirement 3. assuming the expected overhead cout for Department is $85,000 not 560,000). Round overhead rates to the nearest cent Job 73 30674 Plantwide Departmental For this company, would you recommend departmental rates over a plantwide rate? Yes