Halliburton's foods division specializes in the production and distribution of freeze-dried dinners to the military and disaster relief. The first of the two operating departments cooks the food. The second is responsible for packaging and freeze drying the dinners. The dinners are sold by the case, each case containing 25 dinners. Two departments provide support for Halliburton's operating units: Maintenance and Power. Budgeted data for the coming quarter are given below. The company does not separate fixed and variable costs. --Support Departments-- Maintanence Power Cooking ----Producing Departments---- Pack & Freeze Dry Overhead costs $340,000 $200,000 $75,000 $55,000 Machine hours 40,000 40,000 20,000 Kilowatt-hours 20,000 100,000 80,000 Direct labor hours 5,000 30,000 The predetermined overhead rate for cooking is computed on the basis of machine hours; direct labor hours are used for packaging and freeze drying. The prime costs for one case of standard dinners total $16. It takes 2 machine hours to produce a case of dinners in the cooking department and 0.5 direct labor hours to process a case of standard dinners in the packaging and freeze-drying department.