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Please do all requirements, thanks Jameson's Fine Furnishings manufactures upscale custom furniture. Jameson's currently uses a plantwide overhead rate based on direct labor hours to
Please do all requirements, thanks
Jameson's Fine Furnishings manufactures upscale custom furniture. Jameson's currently uses a plantwide overhead rate based on direct labor hours to a locate its $1,450,000 of manufacturing overhead to individual jobs. However, Diana Donaldson, owner and CEO considering refining the company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $730,000 of manufacturing overhead while the Finishing Department incurs 5720,000 of manufacturing overhead. Diana has identfie 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 job information) Read the reguiramants Requirement 1. Compute the plantwide overhead rate assuming that Jameson'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) - Plantwide overhead rate Requirements More Info 1. Compute the plantwide overhead rate assuming that Jameson's expects to incur 25,000 total DL The Jameson'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 3 MH in the Machining Department and 4 DL hours in the hours during the year 2. Compute departmentaloverhead rates assuming that Jameson's expects to incur 14,60D MH in the Machining Department and 16,000 DL hours in the Finishing Department duning the year Finishing Department (the other DL hour occurred in the Machining 3. If Jameson's continues to use the plantwide overhead rate, how much manufacturing overhead 4. If Jameson's uses departmental overhead rates, how much manufacturing overhead would be 5. Based on your answers to Requirements 3 and 4, does the plantwide overhead rate overeost or Department). Job 455 incurred 7 MH in the Machining Department and 3 DL hours in the Finishing Department (the other two DL hours occurred in the Machining Department. would be allocated to Job 450 and Job 4557 allocated to Job 450 and Job 4552 PrintDone undercost either job? Explain. If Jameson's sells its furniture at 125% of cost, wil its choice of allocation systems affect product pricing? ExplainStep by Step Solution
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