Offshore Company makes 2 different types of boats, sail and fishing boats. The company consists of two different departments, design & engineering and production. The company has decided to allocate overhead costs in each of the two cost pools. Data on estimated overhead follows:
Estimated Sail Fish
Activity: Driver Overhead Cost Estimate Estimate
Design # of designs $180,000 22 designs 23 designs
Production Labor hours $994,000 4,500 hours 2,500 hours
What overhead rates will be used in each department to assign costs to the sail boats?