SECTIONS Chapter 5 (15 points) Rom (RC) designs and produces automotive parts. In 2017, variable manufacturing overhead i $280,000 RC's simple costing system allocates variable manufacturing overhead to its three customers based on machine hours and prices its contracts based on full costs. There are three main departments that overhead resources: design, production, and engineering. Usage of Cost Drivers by customer Contract Southern Caesar Jupiter Motors Motors Auto 150 250 100 100 300 3,700 1,000 Department 3 Design Manufacturing Overhead in 2017 $ 35,000 25,000 220.000 $280000 Cost Driver CAD design hours Engineering-hours Machine hours 130 270 15 Engineering i Compute plantwide Manufacturing overhead (MOH) rate based on machine hours (3 point) 2 Compute the manufacturing overhead allocated to each customer in 2017 using the simple costing system that uses machine-hours as the allocation base. points) Southern Motors Caesar Motors Jupiter Auto Variable manufacturing overhead, allocated based on machine hours Total $280,000