A company incurs $1,200,000 of overhead each year in three departments, Processing, Packaging, and Testing. The company performs 800 processing transactions, 200,000 packaging transactions, and 2,000 tests per year in producing 400,000 drums of oil and 600,000 drums of sludge. The following data are available: Department Processing Use of Cost Driver 800 Cost $500,000 Packaging 200,000 500,000 Testing 2,000 200,000 4 Production information for sludge is as follows: Department Processing Packaging Testing Use of Cost Driver 500 80,000 400 Calculate the amount of overhead assigned to sludge