P7.35 Plantwide versus departmental overhead rates; product pricing: manufacturer LO 7.3, 7.4 Constellation Peripherals Ltd manufactures two different multifunction printers (MFPs) fo the business market. Cost estimates for the two models for the current year are as follows: Basic Advanced Direct material $ 800 $1 600 Direct labour (20 hours @ $30 per hour) 600 600 Manufacturing overhead* 800 800 Total $2 200 $3 000 * The predetermined overhead rate is $40 per direct labour hour. Each model MFP requires 20 hours of direct labour. The basic model requires 5 hours in department A and 15 hours in department B. The advanced model requires 15 hours in department A and 5 hours in department B. The budgeted overhead costs in these two production departments are as follows: Department A Department B Variable cost $32 per direct labour hour $8 per direct labour hour