Departmental overhead allocation Lelanii Manufacturing Company operates with three departments—stores, production, and finishing. Following are budgeted data for the coming year and overhead costs expected during the year:

Stores department costs are allocated to the other two departments on the basis of units of product. The overhead rate for the production department is based on direct labor hours, and for the shipping department on finishing cost.

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Number of employees Asset valuation... Direct labor hours Shipping cost.. Units of product Square feet of space Stores Production Finishing 10 34 16 $80,000 $560,000 $160,000 74,900 36,000 163,300 225,000 275,000 3,200 20,800 8,000 Overhead Cost Allocation Base Supervision Administration $ 60,000 Number of employees 264,000 Number of employees Depreciation.. 100,000 Asset value Rent 48,000 Square feet of space Utilities 50,000 Square feet of space