E-M:7-15 Computing and using departmental overhead allocation rates Koehler (see Exercise E-M:7-14) makes handheld calculators in two modelsbasic and professionaland wants to refine its costing system by allocating overhead using departmental rates. The estimated $721,000 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department. The following data have been compiled:

The data is tabulated as follows.

Blank Assembly Department Packaging Department Total

Overhead costs $ 456,500 $ 264,500 $ 721,000

Category Machine hours Blank Blank Blank

Basic Model 185,000 M H r 45,000 M H r 230,000 M H r

Professional Model 230,000 M H r, single underline 55,000 M H r, single underline 285,000 M H r, single underline

Total 415,000 M H r, double underline 100,000 M H r, double underline 515,000 M H r, double underline

Category Direct labor hours Blank Blank Blank

Basic Model 20,000 D L H r 50,000 D L H r 70,000 D L H r

Professional Model 105,125 D L H r, single underline 280,625 D L H r, single underline 385,750 D L H r, single underline

Total 125,125 D L H r, double underline 330,625 D L H r, double underline 455,750 D L H r, double underline

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 costs to whole dollars.