107.3 7.4 market. Cost estimates for the two modols for the current year ore as follows: Basic Advanced Direct material $800 $1600 Direct labour (20 hours 8$30 per houn 600 600 Manufacturing overhead" 800 800 Total $2200 $3000 CHAPTER 7 A closer lock at owerheod cos 9 Each model MFP requires 20 hours of direct labour. The basic model requires 5 hours in department A and 15 hours in department B. The advanced model requires 15 hours in department A and 5 hours in department B. The budjeted overhead costs in these two production departments are as follows: Department A Varioble cost $32 per drect ibour hour $8 per direct labour nour Food cost $400000 $400000 The firm's management expects