Question: ABC Manufacturing allocates overhead costs based on machine hours for one department and direct labor hours for another department. The total overhead costs are $200,000.

  • ABC Manufacturing allocates overhead costs based on machine hours for one department and direct labor hours for another department. The total overhead costs are $200,000. Department A uses 5,000 machine hours, and Department B uses 10,000 direct labor hours. Calculate the overhead allocation rate for each department.                  

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