Question 4: Metal Fabricating has two departments that all goods pass through: machining and assembly Estimated data on each department for 2020 were as follows: Machining Assembly Budgeted Overhead $1,200,000 $580,000 Budgeted Direct Labour 30.000 20,000 Hours Budgeted Machine Hours 80,000 20,000 Actual Overhead $1,210,000 $600,000 Actual Direct Labour hours 28,000 25.000 Actual Machine hours 85.000 18,000 A) Metal Fabricating currently allocates manufacturing overhead using machine hours. Compute the plant-wide overhead rates using machine hours. B) Using plant-wide rate compute the amount of over-applied or under-applied manufacturing overhead for 2020 C) Management is concerned it is losing some jobs due to overpricing and incurring losses on orders. The company controller advised management the company should use departmental rates. The machining department should use machine hours as the cost driver and the assembly department should use direct labour hours as the cost driver. D) Compute the departmental overhead rates. ii) Using departmental rates compute the amount of over-applied or under-applied manufacturing overhead for each department for 2020. iii) Metal Fabricating manufactured 20 shelving units for a local auto repair shop. The cost sheet contained the following information: Direct materials Direct labour Machine hours Direct labour hours Machining $40,000 $16.000 600 240 Assembly $45,000 $8,000 900 700 Compute the selling price for the auto repair shop if the markup is 40% D). Why would a company use departmental rates