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Ford Motor Company operates three manufacturing departments: Engine Assembly, Body Shop, and Paint Shop. The total overhead costs for the year are $1,000,000. The allocation

Ford Motor Company operates three manufacturing departments: Engine Assembly, Body Shop, and Paint Shop. The total overhead costs for the year are $1,000,000. The allocation bases for each department are as follows:

Department

Allocation Base

Percentage of Total Allocation Base

Engine Assembly

Direct labor hours

40%

Body Shop

Machine hours

30%

Paint Shop

Square footage of production area

30%

Calculate the overhead allocation for each department.

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