Automotive Products (AP) designs and produces automotive parts. In 2017, actual variable manufacturing overhead is $ 308,600. AP's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged non-competitive prices, so AP's controller Declan Smith realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information:

			Usage of Cost Drivers by Customer
			Contract
		Manufacturing	Rural	Janek	Island
Department	Cost Driver	Overhead in 2017	Motors	Motors	Auto
Design	CAD-design-hours	$39,000	110	200	80
Engineering	Engineering-hours	29,600	70	60	240
Production	Machine-hours	240,000	120	2,800	1,080
Total		$308,600

1.	Compute the manufacturing overhead allocated to each customer in 20172017 using the simple costing system that uses machine-hours as the allocation base.
2.	Compute the manufacturing overhead allocated to each customer in 20172017 using department-based manufacturing overhead rates.