More Info mil al The Farmer's plant completed Jobs 450 and 455 on May 15. Both jobs incurred a total of 5 DL hours throughout the entire production process. Job 450 incurred 1 MH in the Machining Department and 4 DL hours in the Finishing Department (the other DL hour occurred in the Machining Department). Job 455 incurred 5 MH in the Machining Department and 3 DL hours in the Finishing Department (the other two DL hours occurred in the Machining Department). 25 um hours par Print Done GO Taematori Farmer's Fine Furnishings manufactures upscale custom fumiture. Famer's currently uses a plantvide overhead rate based on direct labor hours to allocate its $1,300,000 of manufacturing overhead to individual jobs. However, Diedra Howards, owner and CEO is considering refining the company's costing system by using departmental overhead stes. Currently, the Machining Department incurs $760,000 of manufacturing overhead while the Fishing Department incurs $540,000 of manufacturing overhead. Howards 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 information) Head the requirements Requirement 1. Compute the plantwide overhead rate assuming that Farmer's expects to incur 25.000 total DL hours during the year First identify the formula, then compute the rate (Round your answer to the nearest whole dollar) Total manutacturing overhead Cost allocation base estimated) - Planwide overhead rate 1.300.000 25.000 52 Requirement 2. Compute departmental overhead rates assuming that Farmer's expects to inou 15.200 MH in the Machining Department and 18,000 DL hours in the Finishing Department during the year Firstly the formula, then compute the rate for each department. (Round your answers to the nearest whole dollar) Departmental Total department overhead Cost location base estimated) Overhead rato Machining 780,000 15.200 550 per mach hour Firstdentity the formulathen calculate the amount of manufacturing overhead that would be allocated to the jobs the plantwide overhead rate is used. (Pound your answers to the nearest whole dar) Manufacturing overhead Planiwide overhead to Actual use of location base located Job 450 52 260 Job 455 260 Requirement 4. if Farmer's uses departmental overhead rates, how much manufacturing overhead would be located to Job 450 and Job 4552 Use the following table to calculate the amount of manufacturing overhead that would be located to the jobs if the departmental overhead rates we used. (Round your answers to the nearest whole dar) Job 450 Job 455 Machining 50 5 250 Requirement 4. Farmer's uses departmental overhead rates, how much manducturing wat would be located to Job 450 and Jb 4557 Use the following table to calculate the amount of manufacturing overhead that would be located to the job ou departmental overhead rates are used (Round you were to realist whole ofat) Job 450 Job 455 Machining 5 50 $ 250 Finishing 120 20 1705 340 Total overhead allocation Requirements. Based on your answers to Requirements 3 and 4. does the plantwide overhead rate overcost or undercost eher job? Explain. If Farmer's sells fumituro at 125% of cost, will it choice of allocation systems affect product pricing? Explain The single par wider | Job 450 by Dand Job 455 by Deparuenta Total department overhead Cost allocation base (estimated) overhead rate Machining $ 760,000 15,200 = $ 50 per mach, hour Finishing $ 540,000 18,000 - $ 30 per DL hour Requirement 3. 1 Farmer'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. (Rou Manufacturing overhead Plantwide overhead rate Actual use of allocation base allocated Job 450 Job 455 5 260 X = 52 5 S 260 52 $
