Kamron's Supply, Inc.:
Material Management Department
Practical capacity	4,500	hours
Fixed costs of the materials services department	500,000
4,000 labor hours to 5,000 labor hours range
Budgeted usage (qty) of materials management labor
hours required to support the departments:
Machining Department	1,800	hours
Assembly Department	2,200	hours
Total	4,000	hours
Budgeted variable cost per materials handling labor hours
in the 4,000 labor-hour to 5,000 labor-hour range	35	per hour used
Actual usage (qty) of materials management labor hours required to support
Machining Department	1,400	hours
Assembly Department	2,300	hours
Total	3,700	hours

Allocation Based on the Supply of Capacity
		Budgeted fixed costs rate per hour
		Budgeted variable-cost rate per hour
		Budgeted total-cost rate per hour
Single-rate method
		Machining department
		Assembly department
		Fixed cost of unused Materials Management Department capacity