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:

Data 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 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. of the company's resources. Job 500 uses Job 501 machine hours than the other job. The accounting system should show that one job actually the other.Requirement 4. Compute the total amount of overhead allocated to each job if Gregoire Products uses its current plantwide overhead rate. Job 500 Job 501 Total direct labour hours x Plantwide allocation rate Overhead allocation