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Super Rat Machine Works, a manufacturing firm, manufactures sprockets for the Tree Bicycle company. The company uses a normal job$-$order costing system. Currently they are using a plantwide overhead rate based on direct labour hours and are interested in understanding the impact of moving to a departmental overhead rate structure with Cutting and Finishing departments using direct labour hours and Machining department using machine hours.Management has provided the following data for its three departments for the coming year.Estimated overhead costs per department$$100,000$Cutting$$260,000$Machining$$36,000$FinishingEstimated normal activity per department $($direct labour hours$)$Cutting$16\mathrm{.}000$Finishing$15,200$Estimated normal activity $($machine hours$)60,000$MachiningManagment estimates costs and activities for a job, Job $1,$ and they need to provide a quote to their customer. The quote price includes a $30\%$ mark up on the cost of the job. Management estimates are noted below.Direct materialsJob $1$Direct labour cost$$5,500$Direct labour hours$$2,000100300400$CuttingFinishingNumber of machine hoursMachiningUsing the above information to answer the following questions.Calculate the departmental overhead rate for the Cutting department.Calculate the departmental overhead rate for the Machining department

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