Question: Reliable Car Parts, a manufacturer of spare parts, has two production departments Assembling and Packaging. The Assembling Department is mechanized, while the Packaging Department is labor oriented. Estimated manufacturing overhead costs for the year were $17,500,000 for Assembling and $12,600,000 for Packaging.
Calculate the department predetermined overhead allocation rates for the Assembling and Packaging Departments, respectively, if the total estimated machine hours were 42,000 and labor hours were 25,000 for the year.
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