Lansing, Inc, provided the following data for its two producing departments: Mochine hours are used to astign the overhead of the Molding Department, and difect labor hours are used to assign the overhead of the Bolshing Department. There are 20,000 units of form A produced and seld and 50,000 of farm B. Required: 1. Calculate the overhead rates for each depactment. Molding per machine hour Polishing per direct labor hour 2. Using departmental rateri, assign overhead to the two products and calculate the overhead cost per unst. Round your answers to thet nearest cent: How does this compare with the plantwide rate unit cost, using direct labor hours? Relative to the plantwide rate, the cost? for form A and for Form B 3. What if the machine hours in Molding were 1,200 for form A and 3,80d for Form 8 and the direct labor hours uted in Polishing were 5,000 ard 15,000 , fespectively? Calculate the overhead cost per unit for each product using departmental rates. Round your answers to the nearest cent. Compare with the plantwide rate unit costs calculated in Requirement 2. What can vou condude from this outcome? Relauve to the plantwide rate, the cost for Form A and: for form 0 renows roleakiwin 1. For departmental rates, OH rates are assigned to each production department either per machine hin. or direct iabar hrs. Dept- eatimated OH + machine havi - rate per machine hour. Dept. estimated OH + direct labor hour a rate per dinect labor hour 2. Machine hours are used to assyn OH of the Molding Dept and direct latior hourv are used to assign oH or the Nolishing bept. Totol applied OH + Units of production = Unt OH cost (each form). Plantwide rate = total estimated oh + total direct hours