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Tuck Inc, is a manufacturing facility that has two production departments: Machining and Finishing. Currently, a plantwide rate based on machine hours is used to
Tuck Inc, is a manufacturing facility that has two production departments: Machining and Finishing. Currently, a plantwide rate based on machine hours is used to assign overhead to jobs. The following data have been estimated for 2023 : In June, the company complete Job 401 . For that job, the company recorded the following information: Required: (A) Compute the predetermined overhead rate for the plant as a whole. (B) Compute the total cost of Job 401. (C) Assume that the company is considering using departmental rates to assign overhead to jobs, instead of using a plantwide rate. With this job order costing system, overhead costs would be assigned based on machine hours in the Machining Department and direct labour costs in the Finishing Department. Compute the predetermined overhead rates for each department. (D) What would be the total manufacturing cost of Job 401 if the company used predetermined departmental rates to assign overhead to the job? (E) How is the use of departmental rates over a plantwide rate an improvement for Tuck Inc
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