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Garvey Furnishings manufactures upscale custom furniture. Garvey Furnishings currently uses a plantwide overhead rate based on direct labour hours to allocate its $1,120,000 of manufacturing overhead to individual jobs. However, Werner Garvey, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $799,000 of MOH while the Finishing Department incurs $374,000 of MOH. Werner has identified machine hours (MH) as the primary MOH cost driver in the Machining Department and direct labour (DL) hours as the primary cost driver in the Finishing Department. (Click the icon to view the job information.) Requirements = Homework: Job information Garvey Furnishings manufa $1,120,000 of manufacturin departmental overhead rate identified machine hours (M Department (Click the icon to vie Requirements The Garvey Furnishings 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 4 MH in the Machining Department and 6 DL hours in the Finishing Department. Job 455 incurred 5 MH in the Machining Department and 3 DL hours in the Finishing Department. The other DL hour occurred in the Machining Department.) Requirements Print Done 1. Compute the plantwide overhead rate assuming that the company expects to incur 20,000 total DL hours during the year. 2. Compute departmental overhead rates assuming that the company expects to incur 17,000 MH in the Machining Department and 17,000 DL hours in the Finishing Department during the year. 3. If the company continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job 450 and Job 455? 4. If Garvey uses departmental overhead rates, how much MOH would be allocated to Job 450 and Job 455? 5. Based on your answers to Requirements 3 and 4, does the plantwide overhead rate overcost or undercost either job? Explain. If the company sells its furniture at 125% of cost, will its choice of allocation systems affect product pricing? Explain