Department 1 Department 2 Budgeted Overhead $400,000 $600,000 Budgeted Direct Materials $500,000 $800,000 Budgeted Direct Labor $400,000 $750,000 Budgeted Machine Hours 100,000 125,000 Budgeted Direct Labor Hours 80,000 200,000 Tom is looking to estimate the costs on a possible job - the Smith job. The following information is available for this particular job. Tom uses machine hours to allocate overhead in department 1 Frank uses direct labor hours to allocated overhead in department 2 Department 1 Department 2 Direct Materials $10,000 $15,000 Direct Labor Costs $15,000 $20,000 Direct Labor Hours 500 1,000 Machine Hours 1,000 1,500 Required Calculate the following amounts for both departments: Calculate the overhead rate Calculate the total estimated cost for the job Department 1 Department 2 Using Toyota as the sample company, give an example of direct materials, direct labor of overhead in the manufacturing of an automobile.