Sanderson's Fine Fumishings manufactures upscale custom fumiture. Sanderson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $1,000,000 of manufacturing overhead to individual jobs. However, Margaret Garmon, owner and CEO, is considering refining the company's costing system by using departmental overhead rates. Cumenty, the Machining Department incurs $600,000 of manufacturing overhead while the Finishing Department inours $340,000 of manufacturing overhead. Gammon has identified machine hours (MH) as the primary manufacturing overhead cost driver in the Machining Department and direct labor (DL) hours as the primary cost driver in the Finishing Department (Click the icon to view the job information) Read the requiements