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Fab Furniture has two manufacturing departments--Cutting andFinishing. It considers all of its manufacturing overhead costs tobe fixed costs. The overhead estimates for the year and for one job(Order #75675) completed during the year are shown below.Estimated DataCuttingFinishingTotalManufacturing overhead costs$6,210,000$6,750,000$12,960,000Direct labor-hours135,00081,000216,000Machine-hours54,000270,000324,000Order # 75675CuttingFinishingTotalDirect labor-hours282048Machine-hours202343Required:1. Calculate the predetermined overhead rate and the amount ofmanufacturing overhead applied to Order #75675 assuming FabFurniture uses a plantwide predetermined overhead rate based ondirect labor hours.2. Fab Furniture is considering using departmental predeterminedoverhead rates with direct labor-hours as the allocation base inCutting and machine-hours as the allocation base in Finishing.Calculate the predetermined overhead rate for each department andthe manufacturing overhead applied to Order #75675 usingdepartmental rates.(Round your intermediate calculation to 2 decimalplaces.)3. Do you recommend that Fab Furniture use a plantwide overheadrate or departmental overhead rates? Why?