A company incurs $1,350,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available:

Department

Expected use of Driver

Cost

	Ordering and Receiving	2,000	$400,000
	Mixing	50,000	500,000
	Testing	1,500	450,000

Production information for Slime is as follows:

Department

Expected use of Driver

	Ordering and Receiving	1,600
	Mixing	30,000
	Testing	1,000