Scout Inc. has two manufacturing departments, the Cutting department and the Finishing department. Currently, the company uses a normal costing system based on a single indirect cost category to allocation manufacturing costs based on machine hours as the allocation base. For 2022, the following was budgeted for the plant Manufacturing overhead costs Direct manufacturing labour costs Cutting department $208,000 $160,000 Finishing department $240,000 $205,000 Direct manufacturing labour hours Machine hours 8,000 10,250 40,000 60,000 Required (A) What is the company's predetermined annual overhead rate? (8) During the year, the company completed Job 123 and reported the following: Job 123 Direct materials used Direct manufacturing labour costs Direct manufacturing labour hours Machine hours Cutting department $12,000 $17,000 850 3,500 Compute the manufacturing overhead costs allocated to Job 123. (C) Compute the total manufacturing cost of Job 123. Finishing department $18,000 $15,000 750 5,200 (D) Ignore your previous calculations. Assume that the company's cost accountant has approached management about using two manufacturing overhead cost pools with direct labour cost as the cost allocation base for the Cutting department and machine hours as the cost allocation base for the Finishing department. Assuming the company continues to use normal costing, compute the budgeted manufacturing overhead rate for each department. (E) Using the rates you computed in (D), compute the manufacturing overhead that would be allocated to job 123. (F) Using the information from (E), compute the total manufacturing cost of job 123. (G) At the end of 2022, the company reported the following actual information for all jobs completed In the year: Cutting Finishing department department Manufacturing overhead costs incurred Direct manufacturing labour cost Direct manufacturing labour hours Machine hours $237,200 $222,400 $176,000 $189,600 8,800 9,480 42,500 58,400 Assuming the company uses two manufacturing overhead cost pools to allocate manufacturing overhead costs, compute the over- or underallocated overhead for each department and indicate whether the amount is over- or underallocated. (H) Which method (single manufacturing overhead cost pool or two manufacturing overhead cost pools) do you recommend for this company? Why? Please explain why your choice is superior to the approach you are not recommending.