Bob and Ernie's Furniture Company has two parts department uses automated machinery to make parts and as a result, uses very few employees. The assembly department is labor intensive because workers manually assemble the parts into finished furniture. Employee fringe benefits ($300,000) and utility costs ($144,000) are the two major overhead costs of the company's production division. The typical consumption patterns for the two departments production departments. The are as follows: Assembly 4,000 20,500 Total 30,000 24,000 Parts Machine hours used Direct labor hours used 26,000 3,500 The supervisor of each department receives a bonus based on how well the department controls costs. The company's current policy requires using single activity base (machine hours or labor hours) to allocate the total overhead cost of $444,000. a 1. Assume you are the parts department supervisor. Choose the allocation base that would minimize your department's share of the total overhead cost, Calculate the amount of overhead to allocate to both departments using the base that you selected 2. Assume you are the assembly department supervisor. Choose the allocation base that would minimize your department's share of the total overhead cost, Calculate the amount of overhead to allocate to both departments using the base that you selected. 3. Assume that you are the plant manager and formulate an overhead allocation policy that would be fair to both supervisors of the parts and assembly departments. Compute the overhead allocation for each department using your policy