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any help ASAP?! significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $304,000 and utility costs are $232,000.

any help ASAP?!

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significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $304,000 and utility costs are $232,000. The typical consumption patterns for the two departments are as follows: Department I Machine hours used Department II Total 14, 700 5, 300 Direct labor hours 20, 000 used 6, 300 9 , 700 16, 000 The supervisor of each department receives a bonus based on how well the department controls costs. The company's current policy requires using a single allocation base (machine hours or labor hours) to allocate the total overhead cost of $536,000. Required a. Assume that you are the supervisor of Department I. Choose the allocation base that would minimize your department's share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected. b. Assume that you are the supervisor of Department II. Choose the allocation base that would minimize your department's share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected. c. Assume that you are the plant manager and have the authority to change the company's overhead allocation policy. Formulate an overhead allocation policy that would be fair to the supervisors of both Department I and Department II. Compute the overhead allocations for each department using your policy

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