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Homework: 4-19A core: 018 of 3 pts 1 of 1(1 comples) HW Score: 606%, a 18 of 3p E4-19A (similar to) Garvey's Fine Fumichings manufactures

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Homework: 4-19A core: 018 of 3 pts 1 of 1(1 comples) HW Score: 606%, a 18 of 3p E4-19A (similar to) Garvey's Fine Fumichings manufactures upocale custom fumture Garvey's currenly unes a planhide overthead rale based on drect labor hours to alocate ts $1.070,000 of manufacturing overhead to indvidual jobs. However Clane Donaldson wnee and Diane has identitied machine hours (Mi) as the primary manufactaring overhead cost diver in the Machining Department and diredt lsbor (DL) hours as the primary cost atver in the Finching Departrsent (Click the icon to view the job information) Read the ment Requirement 1. Compute the plantwide overhead tahe ansuning that Garvey's expects to incur 21,400 oal First idenity the formula then compute the raeound your anwer to the nearest whole dolla ou ing he yer Cost 1070 009 as the D naly cost driver in the F s exp earest ted) More Info The Garvey's plant compieted Jobs 450 and 455 on May 15. Both jobs ncurred a total of 7 DL hours throughout the entire production process, Job 450 incurred 2 MH in the Machining Department and 6 DL hours in the Finishing Department (the other DL hour occurred in the Machining Department) Job 455 incurred 7 MH in the Machining Department and 5 DL hours in the Finishing Department the other two DL hours occurred in the Machining Department) PrintDone ing artmental overhead rates Currently, the Machining Department incurs $630,000 of manufacturing overhead while the overhead cost driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishin ide ovEnead Tate based on direet labor hours to allocate lts 1,070,000 0f 6 Requirements 0 1. Compute the plantwide overhead rate assuming that Garvey's expects to incur 21,400 total DL hours during the year Machining Department and 17.600 DL hours in the Finishing Department during the year would be allocated to Job 450 and Job 455? allocated to Job 450 and Job 4552 undercost either job? Explain if Garvey's seis its furniture at 125% of cost will its choice of 2. Compute departmental overhead rates assuming that Garvey's expects to incur 15,000 MH in the 3. If Garvey's continues to use the plantwide overhead rate, how much manufacturing overhead 4. It Garveys uses departmental overhead rates, how much manufacturing overhead would be 5. Based on your answers to Requirements 3 and 4 does the plantwide overnead rate overcost or allocation systems affect product pricing? Explain Print Done % ) E4-19A (similar to) Garvey's Fine Furnishings manufactures upscale custom furniture. Garvey's currently uses a plantwide overhead rate based on direct labor h CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incur Diane has identified machine hours (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor (D KClick the icon to view the job information.) Read the requirements Requirement 1. Compute the plantwide overhead rate assuming that Garvey's expects to incur 21,400 total DL hours during the year First identify the formula, then compute the rate. (Round your answer to the nearest whole dollar) Total manufacturing overheadCost allocation base (estimated)Plantwide overhead rate 1,070,000 Enter any humber in the edit fields and then click Check Answer Clear All 8 Pemaining

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