Allocation of Overhead - - Groupon Corporation expects to incur $450,000 in manufacturing overhead costs during 2016. Other budget information follows: 1 Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. 2 Use machine hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. 3 Assume that Department A manufactured a product that required 150 direct labor hours and 85 machine hours. If overhead is allocated based on direct labor hours, how much overhead would be allocated to this product? 4 Assume that Department A manufactured a product that required 150 direct labor hours and 85 machine hours. If overhead is allocated based on machine hours, how much overhead would be allocated to this product