The following data from Flames Company includes both cost and other information by department. (4 marks)

Service Department Production Department

	Computer	Personnel	Custodial	Design	Assembly
Overhead	$147,000	$70,650	$24,000	$110,000	$112,000
Computer Hours	1,500	100		1,800	100
Number employees	6	9	3	15	21
Square meters	1,000	2,000	500	5,000	10,000

Flames uses the step method of allocation for service departments and allocates the computer costs (based on computer hours) first followed by personnel (based on number of employees) and custodial (based on square meters). The Design Department uses 500 Labour Hours.

REQUIRED: Compute Overhead rate for the Design Department. (show all calculations)