Reliable Car​ Parts, a manufacturer of spare​ parts, has two production departments—Assembling and Packaging. The Assembling Department is​ mechanized, while the Packaging Department is labor oriented. Estimated manufacturing overhead costs for the year were​ $16,000,000 for Assembling and​ $11,800,000 for Packaging. Calculate the department predetermined overhead allocation rates for the Assembling and Packaging​ Departments, respectively, if the total estimated machine hours were​ 48,000 and labor hours were​ 21,000 for the year.​ (Round your answer to the nearest​ cent.)

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.