Tempest Industries has two service departments (General Factory and Human Resources) and two production departments (Machining and Assembly). The company uses the direct method of service-department cost allocation, allocating General Factory cost on the basis of square feet and Human Resources cost on the basis of employees. Budgeted allocation-base and operating data for the four departments follow.

	General Factory	Human Resources	Machining	Assembly
Square feet	8,300	4,300	96,500	36,500
Employees	63	43	185	245
Machine hours	330	---	67,000	21,300
Labor hours	46,300	26,300	113,000	85,000

Additional information:

• Budgeted costs of General Factory and Human Resources respectively amount to $1,690,000 and $1,080,000.
• The anticipated overhead costs incurred directly in the Machining and Assembly Departments respectively total $3,780,000 and $2,470,000.
• The manufacturing overhead application bases used by Tempests production departments are: Machining, machine hours; Assembly, labor hours.
• Company policy holds that a department's overhead application rate is based on a department's own overhead plus an allocated share of service-department cost.

Required: A. Allocate the company's service-department costs to the producing departments. B. Compute the overhead application rates for Machining and Assembly.