Check r Perez Manufacturing Company uses two departments to make its product s. Department I is a cutting department that is machine intensive and uses very few employees, Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The fringe benefits and utility costs. The annual costs of fringe benefits are $292,000 and utility costs are $220,000. The typical consumption patterns for the two departments are as follows: company's manufacturing facility incurs two significant overhead costs: employee Machine hours used Direct labor hours used 15,800 6,000 5,860 10,800 28,800 16,800 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 $512,000 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 I. Compute the overhead allocations for each department using your policy