Scenario III: Goodmark Company produces two types of birthday cards: scented and regular. During the year, 20,000 scented cards and 200,000 regular cards were produced. Goodmark has two production departments: Cutting and Printing. Direct labor hours are used to assign the overhead of Cutting and machine hours are used for Printing. The data for the two producing departments are given below:

	Cutting		Printing		Total
Direct labor hours:
Scented	10,000		10,000		20,000
Regular	150,000		10,000		160,000
Total	160,000		20,000		180,000
Machine hours:
Scented	2,000		8,000		10,000
Regular	8,000		72,000		80,000
	10,000		80,000		90,000
Overhead costs	$216,000		$504,000		$720,000

Required:

1.

Calculate the overhead rates for each department (round to the nearest cent):

Cutting:	$	per direct labor hour
Printing:	$	per machine hour

2.

Calculate the overhead cost per unit (round to the nearest cent):

Scented:	$
Regular:	$