Just need help on P4-41A on question 1-9. I don't really understand it.

ot each COQ category of the total COQ. 'o 'e Local COStS ot 2. Why would the variable repair cost at the customers' homes generally be higher than 3. How can use of the COQ report lead to improvements in the production process or in PROBLEMS Group A p4-41A Implementation and analysis of departmental rates (Learning Objective 1) Hughes Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1 Of this amount, the Machining Department incurs $600,000 (primarily for machine opera- tion and depreciation), while the Assembly Department incurs $456,000. The company estimates that it will incur 4,000 machine hours (all in the Machining Department) and 9,600 direct labor hours (11600 in the Machining Department and 8,000 in the Assembly Department) during the year. Hughes Products currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead al- location system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department would al- locate its overhead using direct labor (DL) hours.