Cory Newman, the new controller of Common Manufacturing Company (CMC) believes that the company should use the dual rate method of allocating overhead costs of its Materials Management Department to its Machining and Assembly Departments instead of the single rate method, which the company has used since its inception 20 years ago. Newman's Materials Management Department has an annual capacity of 8 comma 000 labor-hours and a budgeted fixed cost of $ 264 comma 000. The budgeted variable cost per labor-hour of the Materials Management Department is $ 22. Newman gathers the following information: