Rate Calculation—Plantwide versus Departmental Step Method. Dell Company allocates some service department costs to other service departments. However, after a department’s costs have been allocated, no costs are assigned back to it. Buildings and Grounds is allocated first, using square feet as a base. The num¬ ber of employees is used as a base for allocating Factory Administration.

Machining Budgeted factory overhead. $360,000 Squarefeet. 9,000 Number ofemployees. 440 Direct laborhours. 452,000 Machinehours. 195,600 Assembly Buildings and Grounds Factory Administration

$420,000

$40,000

$25,000 10,000 1,500 1,000 460 50 30 567,250 23,000 Required:
(1) Compute a plantwide factory overhead rate, using direct labor hours as a base. Round answer to the nearest cent.
(2) Compute the factory overhead rate for Machining, using machine hours as a base, and for Assembly, using direct labor hours as a base. Round answers to the. nearest cent.
CGA-Canada (adapted). Reprint with permission.