ndirect Cost Allocation: Direct Method Charlie Manufacturing Company has two production departments, Melting and Molding. Direct general plant management and plant security costs benefit both production departments. Charlie allocates general plant management costs on the basis of the number of production employees and plant security costs on the basis of space occupied by the production departments using the direct method of overhead allocation. In November, the following overhead costs were recorded:

Melting Department overhead	$ 500,000
Molding Department overhead	400,000
General plant management	200,000
Plant security	100,000

Other pertinent data follow:

	Melting	Molding
Number of employees	60	40
Space occupied (square feet)	20,000	80,000
Machine hours	1,056	3,200
Direct labor hours	10,560	7,200

(a) Develop a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments.

Department	Total	Melting	Molding
General Plant Management
Plant security

(b) Determine the total departmental overhead costs for the Melting and Molding Departments. Melting $Answer

Molding $Answer

(c) Assuming the Melting Department uses machine hours and the Molding Department uses direct labor hours to apply overhead to production, calculate the overhead rate for each production department.

Note: Round final answers to two decimal places. Melting $Answer

Molding $Answer