Voisine Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,100,000. Of this amount, the Machining Department incurs $680,000 (primarily for machine operation and depreciation) while the Assembly Department incurs $420,000. The company estimates that it will incur 10,000 machine hours (all in the Machining Department) and 22,000 direct labor hours (8,000 in the Machining Department and 14,000 in the Assembly Department) during the year. Voisine Products currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead allocation system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department would allocate its overhead using direct labor (DL) hours. The following chart shows the machine hours (MH) and direct labor (DL) hours incurred by Jobs 500 and 501 in each EEB (Click the icon to view the additional information) production department Data Table Machining Assembly Department 12 DL hours Department Job 500.9MH 5 DL hours Job 50118 MH 12 DL hours 5 DL hours Both Jobs 500 and 501 used $1,800 of direct materials. Wages and benefits total $30 per direct labor hour. Voisine Products prices its products at 110% of total manufacturing costs. Requirement 1. Compute the company's current plantwide overhead rate. (Round your answer to the nearest dollar.) Begin by determining the formula, then compute the rate. Plantwide overhead rate per DL hour Requirement 2. Compute refined departmental overhead rates. Determining the formula, then compute the rates. (Round your answers to the nearest dollar) Departmental overhead rate per mach hour per DL hour Machining Requirement 3. Which job (Job 500 or Job 501) uses more of the company's resources? Explain .1 of the company's resources machine hours tan the other job. The accounting system shold show rat one joo actually the other amount of overhead alocated to each job if the company uses its current plantwide overhead rate. Job 500 Job 501 Total direct labor hours x Plantwide alocation rate Requtrement s. Compute the total amount of overhead allocated to each job if the company uses departmental ovarhead rates Job 500 Job 501 Overhead allocation-Machining Department Overhead allocation- Assembly Department Total overhead allocation Requirement 6.Do both of the allocation systems accurately reflect the resources each job used? Explain The sngle plantwile owrhed rate assinedat The deparmenta rales asin of overhead to both jobs. The departmental rates assign to Job 501 than Job 500 due to the used. This seems Requirement 7Compute the total manufactnng cost and sales price of eachjob using the company's arent partn de overhead nte (Ord amonts to re naanost dolar. Enter the percentage as a whole number.) Job 500 Job 501 Direct materials Direct labor Total manufacturing costs Markup for pricing (%) Sales price Requrement &.Based on the current (plantwide) allocation system, how much profit did the company think iR eamed on each job? Calculete the gross profit using the ourrent costing system. Job 500 Job 501 Sales price Less: Total manufacturing costs Gross profit/ (loss) Based on the departmental overhead rates and the sales price determined in Requirement 7, how much profit did the company realy eam on each joo? Caloulate the gross profit using the departmental rate costing system. (Use parentheses or a minus sign to show losses) Job 500 Job 501 Sales price Less: Total manufacturing costs: Direct materials Direct labor Manufacturing overhead Gross profit/(loss Requirement 9. Compare and comment on the results you obtained in Requirements 7 and 8. When utilizing a single rate allocation method, Southwick believes that When utilizing a refined costing method, Southwick realizes that