3. Allocate the overhead cost of the support departments to the production department using the step method.

4. Using direct labour hours, compute departmental overhead rates.

Stubing Company has two producing departments and two support centers. The following budgeted data pertain to these four departments: Support Departments Maintenance Personnel $200,000 $60,000 2,700 30 Overhead Square footage Number of employees Direct labor hours Producing Departments Assembly Painting $43,000 $74,000 5,400 72 25,000 5,400 198 40,000