Lansing, Inc., provided the following data for its two producing departments:

Molding Polishing Total

Estimated overhead $$400,000$ $$80,000$ $$480,000$

Direct labor hours $($expected and actual$)$:

Form A $1,0005,0006,000$

Form B $4,00015,00019,000$

Total $5,00020,00025,000$

Machine hours:

Form A $3,5003,0006,500$

Form B $1,5002,0003,500$

Total $5,0005,00010,000$

Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are $20,000$ units of Form A produced and sold and $50,000$ of Form B$.$

Required:

$1.$ Calculate the overhead rates for each department.

Molding $fill in the blank $1$

per machine hour

Polishing $fill in the blank $2$

per direct labor hour

$2.$ Using departmental rates, assign overhead to the two products and calculate the overhead cost per unit. Round your answers to the nearest cent.

Unit Overhead Cost

Assigned unit overhead cost for Form A $fill in the blank $3$

per unit

Assigned unit overhead cost for Form B $fill in the blank $4$

per unit

How does this compare with the plantwide rate unit cost, using direct labor hours?

Relative to the plantwide rate, the cost

for Form A and

for Form B$.$

$3.$ What if the machine hours in Molding were $1,200$ for Form A and $3,800$ for Form B and the direct labor hours used in Polishing were $5,000$ and $15,000,$ respectively? Calculate the overhead cost per unit for each product using departmental rates. Round your answers to the nearest cent.

Unit Overhead Cost

Form A $fill in the blank $7$

per unit

Form B $fill in the blank $8$

per unit

Compare with the plantwide rate unit costs calculated in Requirement $2.$ What can you conclude from this outcome?

Relative to the plantwide rate, the cost

for Form A and

for Form B$.$