Travelcraft Company manufactures a complete line of fiberglass suitcases and attach cases. The firm has three manufacturing departments: Molding, Component, and Assembly. There are also two service departments: Power and Maintenance. The sides of the cases are manufactured in the Molding Department. The frames, hinges, and locks are manufactured in the Component Department. The cases are completed in the Assembly Department. Varying amounts of materials, time, and effort are required for each of the cases. The Power Department and Maintenance Department provide services to the three manufacturing departments. Travelcraft has always used a plantwide overhead rate. Direct-labor hours are used to assign overhead to products. The predetermined overhead rate is calculated by dividing the company's total estimated overhead by the total estimated direct-labor hours to be worked in the three manufacturing departments. Karen Mason, director of cost management, has recommended that Travelcraft use departmental overhead rates. The planned operating costs and expected levels of activity for the coming year have been developed by Mason and are presented by department in the following schedules. (All numbers are in thousands.) Departmental activity measures: Maximum capacity Estimated usage for the coming year Departmental costs: Materials and supplies Variable labor Service Departments Power 1,250 kilowatt hours 1,000 kilowatt hours $ 7,000 1,800 Maintenance Adjustable 100 hours $1,300 2,460 Fixed overhead Total service department costs Department activity measures: Direct-labor hours Machine hours Departmental costs: Direct material Direct labor 16,550 $25,350 Variable overhead Fixed overhead Total departmental costs Use of service departments: Maintenance: Estimated usage in labor hours for the coming year Power (in kilowatt-hours): Estimated usage for the coming year Maximum allotted capacity 240 $4,000 Manufacturing Departments Molding Component Assembly 500 935 2,600 100 1,900 0 $12,600 3,700 $ 32,000 22,000 $ 1,250 3,200 12,000 12,000 16,800 19,100 6,200 6,100 $38,600 $ 72,200 $ 36,150 70 20 10 400 300 300 600 350 300