LifeSize manufactures two types of computer screens: touch screen and 3-D. The following information is available concerning the manufacturing overhead costs:

Overhead Costs	Cost	Cost Drivers
Administration	$800,000	Production volume
Building lease	450,000	Floor space
Equipment Maintenance and depreciation	600,000	Machine hours
Engineering costs	100,000	Engineering hours
	$1,950,000

	Touch Screen	3-D	Total
Production volume	10,000	30,000	40,000
Floor space	120,000	180,000	300,000
Machine hours	60,000	140,000	200,000
Total engineering hours	100	400	500

Calculate the allocation rate for each of the overhead costs, then compute the total overhead cost using ABC for both the touch screen and the 3-D screens.

Overhead Item	Rate
Administration
Building Lease
Equipment Maintenance and depreciation
Engineering costs

Overhead Item	Touch Screen	3=D
Administration
Building Lease
Equipment Maintenance and depreciation
Engineering costs
Total Overhead