Intelco, a professional services firm, has overheads of £500,000. It operates three divisions and an accountant’s estimate of the overhead allocation per division is 50% for Division 1, 30% for Division 2 and 20% for Division 3. The divisions respectively bill 4,000, 2,000 and 3,000 hours. Calculate the:

• blanket (organization-wide) overhead recovery rate;

• cost centre overhead recovery rate for each division.