Problem (III) Plantwide Overhead Rate vs. Departmental Overhead Rate SHU Manufacturing currently allocates manufacturing overhead costs by plantwide overhead rate using direct labor costs. D. Shim, a controller argues for departmental overhead rates to allocate manufacturing overhead costs to products. For department overhead rates, manufacturing overhead costs are allocated 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 20X3, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 30,000 60,000 Machine-hours 80,000 20,000 Direct labor cost $500,000 $900,000 Manufacturing overhead costs $420,000 $240,000 During month of the March, the accounting records of the company show the following data for Job #316: Direct labor-hours Machine-hours Direct material cost Direct labor cost Machining 120 60 $300 $100 Assembly 70 5 S200 $400 1) For SHU Manufacturing, a. Compute the plant-wide manufacturing overhead rate? b. What are the total manufacturing costs of Job #316? 2) For Department Overhead Rate a. Compute manufacturing overhead rate for each department. b. What are total manufacturing costs for Job #316? c. Amounts at the end of 20x3 are as follows: Machining Assembly Direct labor-hours 30,000 55,000 Machine-hours 85,000 20,000 Direct labor cost $500,000 $900,000 Manufacturing overhead costs incurred $450,000 $200,000 Compute the under-or over-allocated manufacturing overhead for each department and for the whole plant