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Products manufactures its products in two separatedepartments: machining and assembly. Total manufacturing overhead costs for the year are budgeted at $1.14 million. Of thisamount, the

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Products manufactures its products in two separatedepartments: machining and assembly. Total manufacturing overhead costs for the year are budgeted at $1.14 million. Of thisamount, the Machining Department incurs$650,000(primarily for machine operation anddepreciation) while the Assembly Department incurs $490,000. Gregoire Products estimates it will incur 6,000 machine hours(all in the MachiningDepartment) and13,500 direct labour hours (2,500 in the Machining Department and 11,000

in the AssemblyDepartment) during the year. Gregoire Products currently uses a plantwide overhead rate based on direct labour hours to allocate overhead.However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours(MH), but the Assembly Department would allocate its overhead using direct labour(DL) hours. The following chart shows the machine hours(MH) and direct labour(DL) hours incurred by Jobs 500 and 501 in each productiondepartment:

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SAIRI OPAIIIAND IPlannedan nameI andInez mamaInbay Determining the formula, then compute the rate. (Round your answers to the nearest dollar.) = Department allocation rate Machining = machine hour Assembly /DL hourData table Machining Assembly Department Department Job 500 . . . . 7 MH 12 DL hours 3 DL hours Job 501 . . .. 14 MH 12 DL hours 3 DL hoursRequirement 1. Compute Gregoire Products' current plantwide overhead rate. Begin by determining the formula, then compute the rate. (Round your answer to the nearest whole dollar.) Plantwide overhead rate per DL hour Requirement 2. Compute refined departmental overhead rates

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