Assignment$2$ppedSavedHelp Save & IRed Company has two departments: cutting and finishing. The company uses a job$-$order costing system and computes a predetermined overhead rate in each department. The cutting department bases its rate on machine hours, and the finishing department bases its rate on direct labour cost. At the beginning of the year, the company made the following estimates:DepartmentDirect labour hoursMachine hoursManufacturing overhead costDirect labour costCuttingFinishing$5,34024,40048,4005,340$$$476,740$$$628,250$$ $78,400$$$359,000$Required:$1.$ Compute the predetermined overhead rate to be used in each department. $($Round your answers to $2$ decimal places.$)$DepartmentPredetermined overhead rateCuttingper MHFinishing $\%$ of DLC$2.$ Assume that the overhead rates that you computed in Requirement $(1)$ are in effect. The job cost sheet for job $129,$ which was started and completed during the year, showed the following:Direct labour hoursMachine hoursMaterials requisitionedDirect labour costDepartmentCutting Finishing$80$$$500$$ $854$$$380$$$320$ :DepartmentCutting FinishingDirect labour hours$620$Machine hours$804$Materials requisitioned$$500$$$380$Direct labour cost$ $85$$$3202,$ Assume that the overhead rates that you computed in Requirement $(1)$ are in effect. The job cost sheet for job $129,$ which was stan and completed during the year, showed the following:Compute the total overhead cost applied to job $129.($Do not round intermediate calculations and round your answer to $2$ decimal places.$)$Tolal overhead cost applied$3.$ Would you expect substantally different amounts of overhead cost to be assigned to some jobs if the company used a plantwide overhead rate based on direct labour cost, rather than using departmental rates? YesO No