Hi

Watson Products Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Marlon Burke, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Watson has the following data for its two departments for the coming year:

	Department A	Department B
Overhead costs (estimated)	$2,660,000	$924,000
Normal activity (machine hours)	140,000	84,000

Remember to enter numeric amounts without a $ or, {a comma}. If the answer is $20,000.00. then enter the number as 20000. Remember to round 2 decimal places. For numbers such as 1.456, round up to 1.46 and for numbers such as 1.452, round down to 1.45 NOTE: I know there are a lot of assigned questions for this chapter but this chapter does cover a large amount of content and it is important that you have a complete grasp of these concepts before the next midterm. Required: 1. The predetermined overhead rate for the plant as a whole based on machine hours is $ - 2. The predetermine overhead rate for Department A is $ \"3/ . The predetermined overhead rate for Department B is $ 3. Using the PLANTWIDE rate. the overhead costs assigned to Job 73 is $ '5; and the overhead costs assigned to Job 74 is $ Q, Using the DEPARTMENTAL rates, the overhead costs assigned to Job 73 is $ Q; and the overhead costs assigned to Job 74 is $ .3, Which of the two approaches gives the fairer assignment: the application of the - (plantwide rate. departmental rate). Extend your learning: be sure you can explain exactly why you chose the {plantwide rate. departmental rate}. You need to be able to support your answer on a midterm or final exam. 4. Repeat Requirement 3, assuming the expected overhead cost for Department B is $240,000 instead of $132,000 given in the question. For this company. would you recommend departmental rates over a plantwide rate? I would recommend a