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Ford Motor Company allocates overhead costs to its production departments using the direct labor hours method. The company's total overhead costs for the period are
Ford Motor Company allocates overhead costs to its production departments using the direct labor hours method. The company's total overhead costs for the period are $500,000, and the total direct labor hours worked are 20,000. Calculate the predetermined overhead rate per direct labor hour and allocate the overhead costs to the production departments based on the actual direct labor hours worked in each department. Provide a detailed step-by-step calculation of the overhead allocation process.
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