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PLEASE SHOW YOUR WORK 1. (6 points) Hill Manufacturing uses departmental rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on

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1. (6 points) Hill Manufacturing uses departmental rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 201X, the following estimates were provided for the coming year: L Machining Assembly 10,000 90,000 Direct labor hours Machine-hours 100,000 5,000 $80,000 $720,000 Direct labor cost $250,000 Manufacturing overhead costs $360,000 Job #846 required work in both the machining and assembly departments. The accounting records show the following data for Job #846: Machining Assembly Direct labor hours 50 120 101 Machine-hours 170 $2,700 $1,600 Direct material cost $400 Direct labor cost 900 At the end of the year, the accounting records of the company showed the following: Assembly Machining Direct labor hours 10,100 92,000 110,000 Machine hours 5,200 $81,500 $745,000 Direct labor cost $279,000 $377,200 Manufacturing overhead costs a. What is the overhead allocation rate for each department: Assembly Machining b. For the year, was overhead overallocated or underallocated in the Machining Department? By how much? c. What was the actual overhead rate for the Machining Department

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