PROBLEMS 26. (5 points for each departmental overhead rate) Sardec, Inc., a leading manufacturer of car spare parts, divided its manufacturing process into two Departments - Production and Packing. The estimated overhead costs for the Production and Packing departments amounted to $1,000,000 and $2,000,000, respectively. The company produces two types of parts - Part 1 and Part 2. The Production department is mechanized and therefore uses machine hours as the allocation base, whereas the Packing department is labor oriented and uses direct labor hours. The Production Department estimated that it would use 25,000 machine hours, while the packing department estimated that it would use 100,000 direct labor hours. Calculate departmental predetermined overhead allocation rates