Mclean company is about to implement activity-based costing and would like some assistance with calculating rates and applying overhead. The company has provided the following information on cost pools.

Activity Overhead Cost Allocation Base Expected Activity

Design $200,000 Design Hours 4,000

Materials

Handling $150,000 Materials Requisitions 5,000

Production $350,000 Labor Hours 35,000

Purchasing $300,000 Purchase orders 24,000

During the year, actual activity was recorded as follows:

Activity Area Allocation Base Incurred

Design 3,500

Materials Handling 12,500

Production 38,000

Purchasing 20,000

compute the amount of overhead allocated to each product line.