Direct and indirect departmental overhead budgets for the production and service departments of John Company are as follows:

The following factory statistics are necessary to determine the percentage of service received from each service department. Number of repair-hours is used to allocate the building repairs department cost while number of employees is used for allocating Personnel Administration.

Required:
Using linear algebra, determine the overhead application rate per machine-hour. Round the application rate to the nearest dollar.

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Building Repairs.... Personnel Administration. Tooling.... Fabricating $ 87,000 99,000 333,000 392,000 $911,000