Clement Manufacturing Company uses two departments to make its products. 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 companys manufacturing facility incurs two significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $420,000 and utility costs are $300,000. The typical consumption patterns for the two departments are as follows:

The supervisor of each department receives a bonus based on how well the department controls costs. The companys current policy requires using a single allocation base (machine hours or labor hours) to allocate the total overhead cost of $720,000.

Required

• Assume that you are the supervisor of Department I. Choose the allocation base that would minimize your departments share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected.
• Assume that you are the supervisor of Department II. Choose the allocation base that would minimize your departments share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected.
• Assume that you are the plant manager and have the authority to change the companys 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.

Clement Manufacturing Company uses two departments to make its products. Department 1 is a cutting department that is machine intensive and uses very few employoes. Mochines cut and form parts and then place the finished parts on a conveyor beit that carries them to Department II, where they are assembled into finished goods. The ossembly department is labor intensive and requires many workers to assemble parts into finished goods. The company's manufacturing facility incurs two significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $420,000 and utility costs are $300,000. The typical consumption patterns for the two departments are as follows: The supervisor of each department receives a bonus basod 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 $720,000. Required a. Assume that you are the supervisor of Department L. 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 averhead allocations for each deportment using your policy. Complete this question by entering your answers in the tabs below. Assume that you are the supervisor of Department 1. Choose the allocation base that would minimize your department's share of the totat overhead cost. Calculate the amount of overhead that would be aliocated to both departments using the base that Required a. Assume that you are the supervisor of Department L Choose the allocation base that would minimize your departments 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 il. 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 cverhead aliocations for each department using your policy. Complete this question by entering your answers in the tabs below. Assume that you are the supervisor of Department II. Choose the allocation base that would minimize your departments share of the totsl overhead cost. Calculate the amount of overheas that would be alocated to both departments using the base that you selected. a. Assume that you are the supervisor of Department 1 . 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 supervisot of Deportment ti. Choose the allocation base that would minimize your department's share of the total overhead cost. Calculate the amount of overhead that would be alocated to both deportments using the base that you selected. c. Assume that you are the plant manager and have the authority to change the company's overthead allocation pelicy. Formulate an overhesd allocition policy that would be fair to the supervisors of both Department I and Department il. Compute the overtheod allocations for each department using your policy. Complete this question by entering your answers in the tabs below. Assume that you are the plant manaper and have the authonity to change the company's owerhead allocation palicy. Formulate an overhead allocation policy that would be fair to the supelvisoes of both oeportment I and Department it. compute the overtead aliocations for each department uing vour palicy. Note: Do not round intermediate calculations. 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 ll. Choose the allocation base that would minimize your department's shate of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you setected. c. Assume that you are the plant manager and have the authority to change the company's overhead allocation policy. Formulate an overthead allocation policy that would be foir to the supervisors of both Department I and Department il. Compute the overhead allocations for each department using your policy. Complete this question by entering your answers in the tabs below. Assume that you are the supervisor of Department L. Choose the aliocation 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 Yoo selected