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Clement Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees.

Clement Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The company's manufacturing facility incurs two significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $420,000 and tility costs are $300,000. The typical consumption patterns for the two departments are as follows:
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