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Otero Manufacturing Group (OMG) is looking at refining its allocation system by separating manufacturing overhead costs into two cost pools-one for each department. The estimated

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Otero Manufacturing Group (OMG) is looking at refining its allocation system by separating manufacturing overhead costs into two cost pools-one for each department. The estimated costs for the Mixing Department, $1,060,000, will be allocated based on direct labor hours, and the estimated direct labor hours for the year are 400,000. The estimated costs for the Packaging Department, $720,000, will be allocated based on machine hours, and the estimated machine hours for the year are 150,000. In October, the company incurred 36,000 direct labor hours in the Mixing Department and 11,000 machine hours in the Packaging Department. Using multiple department rates, calculate OMG's allocated manufacturing overhead for October. O A $165,600 OB. $154,000 OC. $148,200 D. $159,800

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