Andrews Company manufactures blenders, offering its customers two model options a basic model and a deluxe model. Each model of blender goes through the same two-step production process it is assembled in the Assembly Department and packaged for sale in the Packaging Department. For the month that is about begin, Andrews Company is estimating manufacturing overhead costs of $680,000 in the Assembly Department and $270,000 in the Packaging Department. The company also estimates the following usage of direct labor hours and machine hours for the month:

	Assembly Department	Packaging Department
Direct Labor Hours	500	2,050
Machine Hours	1,800	250

What is Andrews Companys plantwide overhead allocation rate if the company uses direct labor hours as its allocation base?

680000/500=1360/direct labor hours

What is Andrews Companys plantwide overhead allocation rate if the company uses machine hours as its allocation base?

680000/1800=377.78 approximately 378/ machine hours

What is the departmental allocation rate for the Assembly Department if the department uses machine hours as its allocation base?

270000/250=1080 machine hours

What is the departmental allocation rate for the Packaging Department if the department uses direct labor hours as its allocation base?

270000/2050=131.71 approximately 132/direct labor hours

After the month was over, the company was able to provide you with the following data on actual usage and production:

	Basic Model	Deluxe Model	Total
Units Produced:	1,000	450	1,450
Assembly Dept.
Direct Labor Hrs.	200	275	475
Machine Hrs.	800	1,100	1,900
Packaging Dept.
Direct Labor Hrs.	1,475	675	2,150
Machine Hrs.	100	125	225

How much manufacturing overhead will be allocated to each model if the company uses a plantwide overhead allocation rate with an allocation base of direct labor hours?

How much manufacturing overhead will be allocated to each model if the company uses a plantwide overhead allocation rate with an allocation base of machine hours?

How much manufacturing overhead will be allocated to each model if the company uses departmental overhead allocation rates, with the Assembly Department using an allocation base of machine hours and the Packaging Department using an allocation base of direct labor hours?

I am having trouble understanding the rest. Am I supposed to use the answers I came up with? I am confused about what I haven't done and would like an explanation of step by step so I can understand this problem and finish the rest of my problems like this.