2) Capitals Company has two service departments and two producing departments. Budgeted costs and budgeted activity in the various departments for last year are shown below. (3 marks) (show all calculations) Departments 2 Service Departments 2 Production Custodial Cafeteria Cutting Assembly Services Department Department Department overhead costs $50,400 $28,000 $120.000 $200.000 Square meters occupied 500 1,000 4,000 5,000 Number employees 10 15 75 100 Machine hours 10,000 15,000 Service department costs are allocated to producing department with the costs of Custodial Services allocated on the basis of square meters of space occupied and the costs of the Cafeteria on the basis of the number of employees. The department costs for the Cutting and the Assembly departments are overhead costs. Predetermined overhead rates in the Cutting and Assembly department are based on machine hours. Assume that the company uses the direct method of allocation. Calculate the predetermined overhead rate for the Assembly Department