Quintana Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1, 100,000. Of this amount, on list the Machining Department incurs $680,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $420,000. The company estimates that it will incur 10,000 machine hours (all in the Machining Department) and 22,000 direct labor hours (8,000 in the Machining Department and 14,000 in the Assembly Department) during the year. (Click the icon to view the additional information.) X X Requirements Data table 1. Compute the company's current plantwide overhead rate. Quintana Products currently uses a plantwide overhead rate based on direct labor hours to 2. Compute refined departmental overhead rates. allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain. overhead using machine hours (MH), but the Assembly Department would allocate its 4. Compute the total amount of overhead allocated to each job if the company uses its current plantwide overhead using direct labor (DL) hours. The following chart shows the machine hours (MH) and overhead rate . direct labor (DL) hours incurred by Jobs 500 and 501 in each production department: 5. Compute the total amount of overhead allocated to each job if the company uses departmental Machining Assembly overhead rates . Department Department 6. Do both allocation systems accurately reflect the resources that each job used? Explain. Job 500 7 MH 12 DL hours 7. Compute the total manufacturing cost and sales price of each job using the company's current plantwide overhead rate. 5 DL hours 8. Based on the current (plantwide) allocation system, how much profit did the company think it earned Job 501 14 MH 12 DL hours on each job? Based on the departmental overhead rates and the sales price determined in 5 DL hours Requirement 7, how much profit did it really earn on each job? 9. Compare and comment on the results you obtained in Requirements 7 and 8. Both Jobs 500 and 501 used $1,800 of direct materials. Wages and benefits total $30per direct labor hour. QuintanaProducts prices its products at 1108 total manufacturing costs