upscale custom furniture. Jameson's currently uses a plantwide overhead rate based on direct labor hours to allocate its $$1,290,000$ of manufacturing $0$ company's costing system by using departmental overhead rates. Currently, the Machining Department incurs $$870,000$ of manufacturing overhead wh tified machine hours $($MH$)$ as the primary manufacturing overhead cost driver in the Machining Department and direct labor $($DL$)$ hours as the primary cc

on$.)$

Requirements

Compute the plantwide overhead rate assuming that Jameson's expects to incur $30,000$ total DL hours during the year.

Compute departmental overhead rates assuming that Jameson's expects to incur $14,500MH$ in the Machining Department and $17,500$ DL hours in the Finishing Department during the year.

If Jameson's continues to use the plantwide overhead rate, how much manufacturing overhead would be allocated to Job $450$ and Job $455?$

If Jameson's uses departmental overhead rates, how much manufacturing overhead would be allocated to Job $450$ and Job $455?$

Based on your answers to Requirements $3$ and $4,$ does the plantwide overhead rate overcost or undercost either job? Explain. If Jameson's sells its furniture at $125\%$ of cost$,$ will its choice of allocation systems affect product pricing? Explain.