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

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

Required (show your work): 1) Use direct labor hours as the cost driver to compute the allocation rate. Determine the amount of budgeted overhead cost for each department. Answer: 2) Use machine hours as the cost driver to compute the allocation. Determine the amount of budgeted overhead cost for each department. Answer: 3) Assume that Department 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? Answer: 4) Assume that Department 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? Answer: