The Clothing Company has 2 departments: cutting and sewing. The company uses job-order costing and computes a pre-determined overhead rate in each department. The cutting department uses labor hours as its base to calculate the rate and the sewing department uses machine hours. At the beginning of the year, the company made the following estimates: Machine Hours Direct Labor Hours Direct Labor Cost Cutting 10,000 20,000 $300,000 Manufacturing Overhead Cost $200,000 Required: 1. Compute the predetermined overhead rates for each department Sewing 4,000 1,000 $20,000 $100,000 2. Assume the rates calculated in part 1 are in effect. The job cost sheet for job #98, which was started and completed during the year, showed the following: Materials Requisitioned Machine Hours Direct Labor Hours Direct Labor Cost Cutting $1,000 4 8 $120 aCalculate the amount of overhead allocated to job #98 Sewing $100 8 2 $40