Computing and using departmental overhead allocation rates

Koehler makes handheld calculators in two models - basic and professional - and wants to refine its costing system by allocating overhead using departmental rates. The estimated $721,000 of manufacturing overhead has been divided into two costs pools: Assembly Department and Packaging Department. The following data have been compiled:

	Assembly Department	Packaging Department	Total
Overhead Cost	$456,500	$264,500	$721,000
Machine Hours:
Basic Model	185,000 MHr	45,000 MHr	230,000 MHr
Professional Model	230,000 MHr	55,000 MHr	285,000 MHr
Total	415,000 MHr	100,000 MHr	515,000 MHr
Direct Labor Hours
Basic Model	20,000 DLHr	50,000 DLHr	70,000 DLHr
Professional Model	105,125 DLHr	280,625DLHr	385,750 DLHr
Total	125,125 DLHr	330,625 DLHr	455,750 DLHr

Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. How much overhead is allocated to the basic model? To the professional model? Round allocation rates to two decimal places and allocated cost to whole dollars.