Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below:

In addition, the firm budgets manufacturing overhead at $52,000 in the Forming Department and $45,000 in the Finishing Department.
Required:
1. Determine the overhead application rate for each department.
2. Determine the total cost per unit of tennis racquets and golf clubs

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Golf Clubs 8000 $3.50 Tennis Racquets 5,000 $450 Annual production and sales. Direct materials per unit.. Direct labaur cost per unit: Forming Department.. Finishing Department.. Machine hours per unit: Forming Department. Finishing Department.. $3.50 SB00 $3.50 $400 0.75 0.25 0.25