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please solve all parts of this question! Correctly. Will thumbs up of all parts are correct! Under question 3 the two optioms for the drop down are departmental or plantwide

Chapter 4 Question 2

Departmental Overhead Rates Mariposa, tnc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Alice chen, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than can a plantwide rate. Mariposa has the following data for its two departments for the coming year: Required: 1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. per machine hour 2. Compute predetermined overhead rates for each department using machine houn. Round your answers to one decimal place. Department A 1 per machine hour Department B per machine hour 3. Suppose that a machine tool (Product X75) used 60 machine hours from Department A and 160 machine hours from Department B; A second machine tool (Product Y15) used 160 machine hours from Department A and 60 machine hours from Department B. Compute the overhead cost assigned to each product using the plantwide rate computed in Requirement 1 . Repeat the computation using the departmental rates found in Requirement 2. Department A per machine hour Department 8 per machine hour 3. Suppose that a machine tool (Product X75) used 60 machine hours from Department A and 160 machine hours from Department 8 . A second machine tool (Product Y15) used 160 machine hours from Department A and 60 machine hours from Department B. Compute the overhead cost assigned to each product using the plantwide rate computed in Requirement 1 . Repeat the computation using the departmental rates found in Requirement 2 . Which of the two approaches gives the fairest assignment? 4. Repeat Requirement 3 assuming the expected overhead cost for Department B is $330,000. Would you recommend departmental rates over a plantwide rate

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