Department incurs $75,400 in overhead costs. (7.4) Select the basis for manufacturing cost allocation. allocates the General Factory Department overhead on the basis of direct labor costs incurred by each producing department in the factory. The Cutting Department incurred S7,020 in direct labor costs, the Shaping Department incurred $4,680 in direct labor costs and the Assembly Department incurred $11,700 in direct labor costs. Determine the amount that should be allocated to each producing department if the General Factory Department incurs overhead costs of $68,400. (Obj. 3). The Fun Toy Corporation MAR FE