Tim Schneider, the new controller of Universal Manufacturing Company (UMC) believes that the company should use the dual rate method of allocating overhead costs of its Materials Management Department to its Machining and Assembly Departments instead of the single rate method, which the company has used since its inception 20 years ago. Schneider's Materials Management Department has an annual capacity of 6,600 labor-hours and a budgeted fixed cost of $264,000. The budgeted variable cost per labor-hour of the Materials Management Department is $26. Schneider gathers the following information: