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Mariposa, Inc, produces machine tools and currently uses a plantwide overtesd rate, based on machine hours. Harmy Whipple, the plant mantser, has heard that departmental

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Mariposa, Inc, produces machine tools and currently uses a plantwide overtesd rate, based on machine hours. Harmy Whipple, the plant mantser, has heard that departmental overhead rates car offer significaetity better cost assignments than can a blantwide rate. Mariposa has the following csta for its two departments for the coming yesr: 1. Compute a presetermined overhead rate for the plant as a whele based on machine hoors. per machine hour 2. Compute predetermined overhead rates for each department using machine hours. Asund your answers to one decimal place. \begin{tabular}{l|l} Department a & per machine hour \\ Depertment al 1 & per machine hour \end{tabular} hours from Department A and 50 machine hours from Depurtment B. Compute the overhead cout assigned to each product ving the plantwise rate computed in flequirement 1 . Rebeat the oumputabis using the departmental rates founs in Requirement 2. 4. Repeat Requirement 3 assuming the expected overhead cost for Department B is $396,000. Would you recommend departmental rates over a plantwide rate

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