A firm supplied the following information:

Budgeted overhead costs (service cost centre):

Maintenance of buildings N$45 000

Budgeted factory overheads (production cost centres):

Machining N$120 750

Assembling N$34 250

	Budgeted direct labour hours	Area (m2)
Maintenance Machining Assembling	- 2 000 1 000	1 000 2 600 1 400
Total	12 000	5 000

Management has decided to use the area as basis to apportion the cost of the service cost centre between the production cost centres. It has further decided to use the direct labour hours as basis to compute the overhead rates of the production cost centres.

Determine Assembling department's overhead absorption rate.