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Isaacson's Fine Furnishings manufactures upscale custom furniture. Isaacson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,170,000 of
Isaacson's Fine Furnishings manufactures upscale custom furniture. Isaacson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,170,000 of manufacturing i overhead to individual jobs. However, Diane Isaacs, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $735,000 of manufacturing overhead while the Finishing Department incurs $435,000 of manufacturing overhead. Isaacs has identified machine hours (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishing Department. (Click the icon to view the job information) Read the requirements Exc Machining Finishing 735,000 435,000 15,000 17,400 $ 49 per mach hour $25 per DL hour Requirement 3. If Isaacson's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 4557 First identify the formula, then calculate the amount of manufacturing overhead that would be allocated to the jobs if the plantwide overhead rate is used. (Round your answers to the nearest whole dollar.) Job 450 Job 455 Manufacturing overhead Plantwide overhead ralei Actual use of allocation base allocated 45 45 $ 270 270 Requirement 4. If Isaacson's uses departmental overhead rates, how much manufacturing overhead would be allocated to Job 450 and Job 4557 Use the following table to calculate the amount of manufacturing overhead that would be allocated to the jobs if the departmental overhead rates are used. (Round your answers to the nearest whole dollar) Job 450 Job 455 Machining Finishing 40 S 204 150 125 Total overhead allocation 100] 410
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