TriTech Company has been allocating overhead to individual product lines based on each lines relative shares of direct labor hours. For the upcoming year, the company estimated that manufacturing overhead will be $1,800,000 and estimated direct labor hours will be 120,000. The company also has the following estimates:

Cost Pool		Cost Driver		Total Amount			Total Amount of Activity
Maintenance costs		Direct labor hours		$ 700,000			120,000
Setup costs		Number of setups		500,000			200
Engineering costs		Number of design changes		600,000			400
				$1,800,000

Among many other products, TriTech has two switches, Standard and Elite switches. Standard switches are a high-volume product that the company makes in large batches, while Elite switches are a specialty product that is fairly low in sales volume. Information about Standard and Elite usage of the different activities follows:

		Standard			Elite
Direct labor hours		3,000			300
Number of setups		1			14
Number of design changes		2			20

(a)

Calculate the predetermined overhead rate based on direct labor hours (traditional allocation). (Round answer to 2 decimal places, e.g. 15.25.)

Predetermined overhead rate

$

per DLH

Use this predetermined overhead rate to calculate the amount of overhead to apply to Standard and Elite switches, based on their usage of direct labor hours. (Round answers to 0 decimal places, e.g. 125.)

		Standard		Elite
Overhead allocated		$		$