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. Nu Phi Company, accumulated the following data for 2015: Milling Department manufacturing overhead .. $400,000 Finishing Department manufacturing overhead.. $176,000 Machine hours used Milling

. Nu Phi Company, accumulated the following data for 2015:

Milling Department manufacturing overhead .. $400,000

Finishing Department manufacturing overhead.. $176,000

Machine hours used

Milling Department 12,500 hours

Finishing Department.. 2,750 hours

Labor hours used

Milling Department 1,250 hours

Finishing Department.. 1,100 hours

Required:

Calculate the plant-wide manufacturing rate using machine hours as the allocation base.

Calculate the plant-wide manufacturing rate using direct labor hours as the allocation base.

Calculate department overhead rates using machine hours in Milling and direct labor hours in Finishing as the allocation bases.

Calculate department overhead rates using direct labor hours in Milling and machine hours in Finishing as the allocation bases.

Which of these allocation systems seem to be the most appropriate? Explain.

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