Bristol Company uses the direct method in distributing service department costs to producing departments. Costs of Department SI are distributed on the basis of number of employees, while costs of Department S2 are distributed on the basis of machine hours. The allocation bases used in calculating predetermined overhead rates are machine hours in Department PI and direct labor hours in Department P2.

The following data pertain to Job 437:

Required:
(1) Calculate predetermined overhead rates for the producing departments and compute the resulting overhead cost of Job 437.
(2) Calculate a plant wide predetermined overhead rate based on direct labor hours and compute the resulting overhead cost of Job 437.

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Producing Departments Service Departments P1 P2 S1 S2 Budgeted overhead... Number of employees.. Machine hours.. $410,000 $304,000 S100,000 $50,000 28 90 64,000 210 16,000 20 35,000 00,000 Department P1 $90 Department P2 $40 Direct labor hours. 2 Machine hours.. 3