Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments:

		Support Departments		Producing Departments
		Maintenance	Personnel	Assembly	Painting
Overhead		$200,000	$60,000	$43,000	$74,000
Square footage			2,700	5,400	5,400
Number of employees		30		72	198
Direct labor hours				25,000	40,000

Required

1. Allocate the overhead cost of the support departments to the production department using the reciprocal method.

2. Using direct labour hours, compute departmental overhead rates.