Howard Inc. has two support departments and two producing departments. Information for each department for the year is as follows:

Support DepartmentsProducing Departments

	Maintenance	Personnel	Cutting	Assembly
Budgeted overhead	160,000	300,000	600,000	800,000
Direct Labor Hours	16,000	2,000	40,000	50,000
Machine Hours	40,000	10,000	90,000	30,000
Number of employees	10	20	140	160

The company does not divide costs into fixed and variable components.

Maintenance costs are allocated based on machine hours, and pesonnel costs are allocated based on the number of employees.

Predetermined overhead rates for the producing departments are based on direct labor hours.

Required

A. Allocate the support department costs using the direct method. Calculate the pre determined overhead rate for the producing departments.

B. Allocate the support-department costs using the sequential method and starting with the Personnel Department. Calculate the predetermined overhead rate for the producing departments.

C. Allocate the support-department costs using the reciprocal method. Calculate the pre determined overhead rate for the producing departments.