Chin Chow Products, Inc. operates with two manufacturing departments. The Shaping and Forming Department uses more machinery and equipment, and the overhead rate is based on machine hours.

Assembly is more labor intensive, and the overhead rate is based on direct labor hours. Budgeted hours and budgeted overhead at normal volume are given below for each department:

Order #878 required 50 hours of machine time in Shaping and Forming and 30 direct labor hours in Assembly.

Required:
1. Compute the overhead rates for each of the two departments.
2. Determine the factory overhead applied to Order #878 in each of the two departments.

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Budgeted machine hours Budgeted direct labor hours Budgeted overhead... Departments Shaping and Forming 150,000 $ 450,000 Assembly 50,000 $ 250,000