Asarco Ltd is preparing its overhead budgets for an upcoming period. The company has three production departments; machining, finishing and assembly and two service departments, stores and inspection. The following data has been provided: Overhead cost Machine hours Machining Finishing Assembly Stores Inspection $48,000 6,000 $50,500 $54,000 $48,100 $52,400 4,800 5,200 Overhead is absorbed on a machine hour basis. It has been estimated that service department usage is as follows: Machining Finishing Assembly Stores Inspection Stores Requisition 200 250 100 450 Number of inspections 390 390 260 260