Machining Department and direct labor $($DL$)$ hours as the primary cost driver in the Finishing Department.

View the job information.

Read the requirements.

Requirement $1.$ Compute the plantwide overhead rate assuming that Bergeron's expects to incur $20,000$ total DL hours during the year.

First identify the formula, then compute the rate. $($Round your answer to the nearest whole dollar.$)$

Job information

The Bergeron's plant completed Jobs $450$ and $455$ on May $15.$ Both jobs incurred a

total of $7$ DL hours throughout the entire production process. Job $450$ incurred $1$ MH

in the Machining Department and $6$ DL hours in the Finishing Department $($the ot

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$).$

Requirements

Compute the plantwide overhead rate assuming that Bergeron's expects to incur $20,000$ total DL

hours during the year.

Compute departmental overhead rates assuming that Bergeron's expects to incur $15,600MH$ in

the Machining Department and $17,500$ DL hours in the Finishing Department during the year.

If Bergeron's continues to use the plantwide overhead rate, how much manufacturing overhead

would be allocated to Job $450$ and Job $455?$

If Bergeron's uses departmental overhead rates, how much manufacturing overhead would be

allocated to Job $450$ and Job $455?$

Based on your answers to Requirements $3$ and $4,$ does the plantwide overhead rate overcost or

undercost either job? Explain. If Bergeron's sells its furniture at $125\%$ of cost$,$ will its choice of

allocation systems affect product pricing? Explain.