Mr. Robbins's detailed medical records indicated that a total of 20 labor hours were directly used in providing his care. The cost of labor was $380. It was expected before the beginning of the year that a total of 90,000 direct labor hours would be consumed by the health-care organization's patients, at a cost of $1,350,000. The total overhead to be allocated to patients was expected to be $810,000.

1. Determine the overhead to be assigned to Mr. Robbins based on the data given.
2. Solve this problem in two ways:
   1. First, assign overhead on the basis of direct labor hours.
   2. Second, assign overhead on the basis of direct labor costs.
   3. Why might your results differ?

My professor gave us the following template for us to be able to answer the questions asked in the problem (1-3). However, I am getting confused by what the allocation factor is/share of allocation factor. I simply solved Mr. Robbin's overhead by comparing the ratio given for the hospitals costs/overhead. Is this the right approach?

Please give a detailed explanation of the correct approach, it is our first homework assignment. I need quite a bit of direction.