Problem 5-30 Overhead Rates, Unit Costs Xa nning Company manufactures specialty to roducing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Estimated overhead Direct labour hours Direct labour cost Machine hours Welding Assembly Finishing S200,000 $22,000$250.000 6,000 $90,000$150,000 $120,000 2,000 4.500 10,000 5,000 1,000 Currently, overhead is applied on the basis of machine hours using a plantwide rate. However Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that welding and finishing should base their overhead rates on machine hours and that assembly should base its overhead rate on direct labour hours. Continued)