Jefferson Company expects to incur $460,000 in manufacturing overhead costs during 2014. Other budget information is below

	Dept A	Dept B	Dept C
Direct Labor hours	15,000	5,000	20,000
Machine Hours	8,000	10,000	12,000

1. Use direct labor hours as a cost drive to compute the allocation rate: Determine the amount budgeted overhead cost for each department

2. Use Machine hours as a cost driver to compute the allocation . Determine the amount budgeted overhead cost for each department

3. Assume that dept A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on direct labor hours, how much overhead would be allocated to this product?

4. Assume that dept A manufactured a product that required 160 direct labor hours and 85 machine hours. If overhead is allocated based on machine hours, how much overhead would be allocated to this product?