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37. Holbrook Corporation is developing departmental overhead rates based on direct labor hours for its two production departments. Molding and Assembly. The Molding Department worked

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37. Holbrook Corporation is developing departmental overhead rates based on direct labor hours for its two production departments. Molding and Assembly. The Molding Department worked 2 0,000 hours during the period just ended. and the Assembly Department worked 40,000 hours. The overhead costs incurred by Molding and Assembly were $151.250 and $440.750, respectively. Two service departments. Repair and Power, directly support the two production departments. These service departments have costs of $90.000 and $250.000. respectively. The following schedule reflects the use of Repair and Power?s output by the various departments :Required: A. Allocate the company?s service department costs to production departments by using the direct method. B. Calculate the overhead application rates of the production departments. Hint: Consider both directly traceable and allocated overhead when deriving your answer. C. Allocate the company?s service department costs to production departments by using the step-down method. Begin with the Power Department. and round calculations to the nearest dollar

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