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Looking help for below:

Exercise 5-16 Overhead Application [LO3, LO5]

Sportway Inc. produces high-quality tennis racquets and golf clubs using a patented forming process and high-quality hand-finishing. Products move through two production departments: Forming and Finishing. The company uses departmental overhead rates to allocate overhead costs. Overhead is allocated based on machine-hours in Forming and direct labour cost in Finishing. Information related to costs for last year is provided below:

Tennis RacquetsGolf ClubsAnnual production and sales (units)5,0008,000Direct materials cost per unit$4.50$3.50Direct labour cost per unit:Forming Department$3.00$2.50Finishing Department$6.00$4.00Machine hours per unit:Forming Department0.250.25Finishing Department0.50

In addition, the firm budgets manufacturing overhead at $35,750 in the Forming Department and $46,500 in the Finishing Department.

Required:

1. Determine the overhead application rate for each department. (Round your answers to 2 decimal places.)

2. Determine the total cost per unit of tennis racquets and golf clubs. (Round your answers to 2 decimal places.)