Use the following information in answering questions one and two. Hot Air Equipment, LLC. manufactures burners and other products for hot air balloons. Hot Air has traditionally used a plant-wide overhead rate for allocating cost to its products. Because of the dramatic differences between its two production departments (Fabrication and Assembly) management has decided to investigate using departmental overhead rates for allocating overhead to its products. The following information has been accumulated with respect to budgeted departmental overhead, cost drivers and Hot Air's most popular Hercules Burner. Fabrication Budgeted overhead costs $1,460,000 direct labor hours 20,000 machine hours 10,000 maintenance hours 400 Assembly $726,000 30,000 2,000 100 Budgeted information for production of 1,200 Hercules Burners Direct Materials Direct Labor Direct labor hours Fabrication Assembly Department Department Total $320,000 $ 40,000 $360,000 $ 57,600 $ 75,000 $132,600 1,800 3,000 4,800 1,000 150 1,150 Machine hours 1. Develop departmental overhead rates for the production departments using machine hours in the fabrication department and labor hours in the assembly department. 2. Determine the product cost of one Hercules Burner