Outdoor Manufacturers makes hatchets, knives, and other tools for use by campers and hikers. Its employees work in three departments: Machining, Polishing, and Assembling. In the Machining Department, robots are used to handle the metals, and one employee monitors the operations. The employees of the Polishing Department clean and polish the blades. In the Assembly Department, employees inspect each blade for defects and attach wooden handles and the firm’s decals.

As the cost accountant you have been asked to determine the overhead application basis most appropriate for each department. In a short written report, present your suggestions on the methods to use and your reasons for choosing each basis.