Fab Furniture has two manufacturing departments--Cutting and Finishing. It considers all of its manufacturing overhead costs to be fixed costs. The overhead estimates for the year and for one job (Order #75675) completed during the year are shown below. Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours $ Cutting $ 4,370,000 115,000 46,000 Finishing $ 4,830,000 69,000 230,000 Total 9,200,000 184,000 276,000 Cutting Order # 75675 Direct labor-hours Machine-hours Finishing 16 19 Total 40 35 16 Required: 1. Calculate the predetermined overhead rate and the amount of manufacturing overhead applied to Order #75675 assuming Fab Furniture uses a plantwide predetermined overhead rate based on direct labor hours. 2. Fab Furniture is considering using departmental predetermined overhead rates with direct labor-hours as the allocation base in Cutting and machine-hours as the allocation base in Finishing. Calculate the predetermined overhead rate for each department and the manufacturing overhead applied to Order #75675 using departmental rates. (Round your intermediate calculation to 2 decimal places.) 1. Plantwide predetermined overhead rate Plantwide manufacturing overhead applied to Order #75675 2. Cutting Department predetermined overhead rate Manufacturing overhead applied from Cutting to Order #75675 Finishing Department predetermined overhead rate Manufacturing overhead applied from Finishing to Order #75675 Total departmental manufacturing overhead applied to Order #75675 3. Do you recommend that Fab Furniture use a plantwide overhead rate or departmental overhead rates? Why? Toolbar navigation BI U $ E 33 335 - A - A - $