ABC Manufacturing Company produces electronic devices. During June 2024, the company incurred the following costs for its two departments, Assembly and Testing:

Cost Category	Assembly (SAR)	Testing (SAR)
Direct Materials	20,000	15,000
Direct Labor	25,000	20,000
Indirect Costs	10,000	8,000

Additional information:

• Assembly produced 1,000 units, and Testing produced 800 units.
• Standard direct material cost per unit is SAR 20 for Assembly and SAR 18 for Testing.
• Standard direct labor cost per unit is SAR 25 for Assembly and SAR 22 for Testing.
• Calculate the overhead allocation rate for each department.
• Allocate overhead costs to each department.
• Calculate the direct material and direct labor cost variances for both departments.