A manufacturer reports the following budgeted data for its two production departments.

1. What are the departmental overhead rates if the Machining department allocates overhead based on machine hours and the Assembly department allocates overhead based on direct labor hours?
2. Using the departmental overhead rates, how much overhead should be allocated to a job that uses 16 machine hours in the Machining department and 5 direct labor hours in the Assembly department?

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Budgeted Data Overhead costs..... Machine hours (MH).. Direct labor hours (DLH)... Machining Assembly $600,000 $300,000 20,000 10,000 0 5.000