ENC Company has two support departments and two production departments. Budgeted manufacturing overhead costs and budgeted activity in the departments for the current year are below:

	Support Departments	Production Departments
	Finance	Human Resource	Cutting	Sanding
Departmental costs	$100,000	$195,000	$600,000	$800,000
Square metres	500	1,000	10,000	9,000
Number of employees	20	40	30	20
Machine hours	-	-	100,000	60,000
Labour Hours	20,000	20,000	20,000	10,000

The company uses the sequential (step) method to allocate support department costs to production departments. The overhead cost of the finance department is allocated first based on square metres occupied. The overhead cost of the human resource department is allocated based on the number of employees. Predetermined overhead rates in both production departments are based on labour hours. The product produced by ENC Company requires 2 labour hours per unit in the cutting department and 1 labour hour per unit in the sanding department. Prime cost for the product is $180 per unit. ENC Company prices its product at full production cost plus 50% mark-up.

Required:

a)Allocate the support departments overhead costs to the production departments and calculate the total budgeted manufacturing overhead cost for each production department.

b)Calculate the predetermined manufacturing overhead rate for the cutting department.

c)Calculate the predetermined manufacturing overhead rate for the sanding department.

d)Should actual or budgeted support department overhead costs be allocated to the production departments? Provide detailed explanations.

e)Calculate the per unit price of the product produced by ENC Company.