Gordon Company manufactures a product in two producing departments: P1 and P2. Three support departments support the production departments: SA, SB, and SC. Budgeted data on the five departments follow:

Support Departments Producing Departments cl SA SB SG PI P2 tg ee ee Overhead $130,000 $240,000 $120,000 $60,000 $116,000 Kilowatt-hours — 13,000 25,000 30,000 70,000 Square feet 2,000 — 6,000 24,000 8,000 Machine hours — = = 4,000 6,000 SA is allocated on the basis of kilowatt-hours, SB is allocated on the basis of square footage, and SC is allocated on the basis of machine hours. The company does not break overhead into fixed and variable components.
Required:
1. Allocate the overhead costs to the producing departments using the direct method.
2. Using machine hours, compute departmental overhead rates.