Volume-based method of overhead cost allocation

Required: -Allocate costs to products on the basis of labour hours -Over head cost rate = - Please write the formula or equation

Company Z has 2 service centres and 2 production centres The company use labor hours as the base for allocating costs of production centre A and space occupied as the base for allocating costs of production centre B Service Centres Production centres A B X Y Over head costs 100,000 150.000 220,000 340,000 50 Labor hours (hrs) 40 250 200 500 180 300 Space occupied (Square metres) 240 Production centre X Production centre Y XI X2 YI Y2 DMC (S/unit) 15 30 Direct labour hours (hrs)- $3/hr 8 18 Total units produced 800 5,000 18 6 1.200 36 20 3,500