Goodmark Company produces two types of birthday cards: scented and regular. During the year, 20,000 scented cards and 200,000 regular cards were produced. Goodmark has two production departments: Cutting and Printing. Direct labor hours are used to assign the overhead of Cutting and machine hours are used for Printing. The data for the two producing departments are given below:

Required:
1. Calculate the overhead rates for each department (round to the nearest cent):
2. Calculate the overhead cost per unit (round to the nearest cent):

Transcribed Image Text:

Cutting Total Printing Direct labor hours: Scented 10,000 10,000 20,000 Regular 150,000 10,000 160,000 Total 160,000 20,000 180,000 Machine hours: Scented 10,000 2,000 8,000 Regular 8,000 72,000 80,000 10,000 80,000 90,000 Overhead costs $504,000 $216,000 $720,000