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Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products.

Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machinehours in the Machining Department and on the basis of direct laborhours in the Assembly Department. At the beginning of 20xx, the following estimates were provided for the coming year: Machining Assembly Direct laborhours 10,000 dlh 90,000 dlh Machinehours 100,000 mh 5,000 mh Direct labor cost $ 80,000 $720,000 Manufacturing overhead costs $250,000 $360,000 The accounting records of the company show the following data for Job #846: Machining Assembly Direct laborhours 50 dlh 120 dlh Machinehours 170 mh 10 mh Direct material cost $2,700 $1,600 Direct labor cost $ 400 $ 900 Compute the manufacturing overhead allocation rate for each department. Compute the total cost of Job #846. Provide possible reasons why Hill Manufacturing uses two different cost allocation rates

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