E3-10A. Service Department Cost Allocation Presented below are certain operating data for the four depart- ments of Tally Manufacturing Company.

Service Production

1 2 1 2

Total manufacturing overhead costs either

identifiable with or allocated to

each department . . . . . . . . . . . . . . . . . . . . . . $60,000 $72,000 $90,000 $98,000

Square feet of factory floor space . . . . . . . . . 40,000 80,000

Number of factory workers. . . . . . . . . . . . . . . . . . . . 50 10

Planned direct labor hours for the year . . . . . . . . . . 20,000 30,000

Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. What is the apparent overhead rate for each production department if planned direct labor hours are the overhead application base?