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Kansay Design determines that a departmental overhead rate should be used to allocate its $25,500 of...

Kansay Design determines that a departmental overhead rate should be used to allocate its $25,500 of estimated overhead costs, which can be broken down into $13,200 estimated to be incurred in the Cutting Department and the remainder estimated to be incurred in the Finishing Department. Use the following information for the company.

Cutting (machine hours)
Product K 10,052
Product M 14,525
Finishing(direct labor hours)
Product K 5,110
Product M 7,235

a. Calculate the overhead rates for the Cutting and Finishing Departments.
b. Calculate the factory overhead allocated to each product line.

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