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Belami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and

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Belami Company manufactures shampoo and hair conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments General Factory Purchasing Producing Departments Shampoo Conditioner Power Overhead $94,000 $430,000 $150,000 $146,000 $170,000 Square feet 3,000 3,000 9,600 8,400 Machine hours 1,403 1,345 8,000 24,000 Purchase orders 20 40 7 60 120 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. REQUIRED: 1. Allocate the overhead costs to the producing departments using the direct method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)

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