Dallas Company manufactures high-quality street bikes and mountain bikes using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below. Street Mountain Annual production and sales (units) 5,200 8,300 Direct materials cost per unit $ 4.70 $ 3.60 Direct labour cost per unit: Forming Department Finishing Department Machine hours per unit: Forming Department Finishing Department $ 5.00 $ 4.50 $ 7.00 $ 6.00 0.25 0.25 0.00 0.50 In addition, the firm budgets manufacturing overhead at $38,750 in the Forming Department and $48,500 in the Finishing Department 1. Determine the overhead application rate for each department. 2. Determine the total cost per unit of street bikes and mountain bikes