The Delta Toys company manufactures figurines. Delta Toys has two production departments. The Welding Department welds the different components of the figurines and the Assembly Department assembles the figurines. For the Welding Department, the departmental overhead rate is based on the number of machine hours and for the Assembly Department, the departmental overhead rate is based on the number of labour hours. The machine hours for the Welding Department is 39,600 hours a year and the labour hours for the Assembly Department is 28,800 hours a year.

Delta Toys also has two support departments: Materials Handling Department and Maintenance Department, and both these departments support each other and also the Production Departments. The budgeted overhead costs for the production departments, Welding and Assembly and the budgeted costs for the support departments, Materials Handling and Maintenance are as follow:

Production DepartmentsBudgeted Overhead Costs

Welding Department $1,764,000

Assembly Department $1,180,000

Support DepartmentsBudgeted Costs

Materials Handling Department $471,600

Maintenance Department $230,400

The following schedule reflects the use of the Materials Handling Department's and Maintenance Department's outputs by the various departments.

Used By Supplied by Materials Maintenance Welding Assembly Handling Materials Handling (number of - 1,000 3,000 2,000 deliveries) Maintenance (maintenance 20,000 - 20,000 80,000 hours)