Budgeted overhead costs in each department for the current year are shown below. Personnel Custodial Services Maintenance Printing Binding Total budgeted cost $360,000 141,000 201,000 525,000 373,500 $1,600,500 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Direct Labor-Hours 900 Printing Department Binding Department Total hours Machine Hours 15,400 800 16,200 2.000 2,900 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 1. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 2. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Printing Department Binding Department Total hours Machine-Hours 15,400 800 16,200 Direct Labor-Hours 900 2,000 2,900 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 1. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor- hours as the allocation base in the Binding Department. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rate" answers to 2 decimal places and other answers to the nearest whole dollar amount.) Show less Custodial Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor- hours as the allocation base in the Binding Department. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rate" answers to 2 decimal places and other answers to the nearest whole dollar amount.) Show less Custodial Personnel Services Maintenance Printing Binding $ 360,000 $ 141,000 $ 201,000 $ 525,000 $ 373,500 (360,000) Departmental costs before allocations Allocations: Personnel costs Custodial services costs Maintenance costs Total costs after allocations Predetermined overhead rate 0 141.000 201,000 525,000 373.500 Required 2 > Required 1 Required 2 Required 3A Repeat requirement 1, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round Intermediate calculations. Round "Predetermined overhead rate" answers to 2 decimal places and other answers to the nearest whole dollar amount.) Show less Personnel Custodial Services Maintenance Printing Binding $ 360,000 $ 141,000 $ 201,000 $ 525,000 $ 373,500 Departmental costs before allocations Allocations: Personnel costs Custodial services costs Maintenance costs Total costs after allocations Predetermined overhead rate 360,000 141,000 201,000 525,000 373,500 Budgeted overhead costs in each department for the current year are shown below. Personnel Custodial Services Maintenance Printing Binding Total budgeted cost $360,000 141,000 201,000 525,000 373,500 $1,600,500 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Direct Labor-Hours 900 Printing Department Binding Department Total hours Machine Hours 15,400 800 16,200 2.000 2,900 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 1. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 2. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. 3. Assume that during the current year the company bids on a job that requires machine and labor time as follows: Printing Department Binding Department Total hours Machine-Hours 15,400 800 16,200 Direct Labor-Hours 900 2,000 2,900 a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 1. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in requirement 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor- hours as the allocation base in the Binding Department. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rate" answers to 2 decimal places and other answers to the nearest whole dollar amount.) Show less Custodial Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor- hours as the allocation base in the Binding Department. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rate" answers to 2 decimal places and other answers to the nearest whole dollar amount.) Show less Custodial Personnel Services Maintenance Printing Binding $ 360,000 $ 141,000 $ 201,000 $ 525,000 $ 373,500 (360,000) Departmental costs before allocations Allocations: Personnel costs Custodial services costs Maintenance costs Total costs after allocations Predetermined overhead rate 0 141.000 201,000 525,000 373.500 Required 2 > Required 1 Required 2 Required 3A Repeat requirement 1, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round Intermediate calculations. Round "Predetermined overhead rate" answers to 2 decimal places and other answers to the nearest whole dollar amount.) Show less Personnel Custodial Services Maintenance Printing Binding $ 360,000 $ 141,000 $ 201,000 $ 525,000 $ 373,500 Departmental costs before allocations Allocations: Personnel costs Custodial services costs Maintenance costs Total costs after allocations Predetermined overhead rate 360,000 141,000 201,000 525,000 373,500