Comprehensive Case (Ch. 15) The manager of Rochester Manufacturing Company are discussing ways to allocate the cost of service departments, such as quality control and Maintenance, to the production departments. To aid them in this discussion, the controller has provided the following information: Service Departments Production Departments Total Quality Maintenance Machining Special Budgeted overhead costs control $350,000 processing $200,000 $400,000 $300,000 $1,250,000) before allocation Budgeted machine hours 50,000 50,000 Budgeted number of setups 25,000 25,000 Budgeted hours of services: Quality control Maintenance 7,000 21,000 7,000 35,000 10,000 18.000 12,000 40,000 Rochester Manufacturing Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Hubs Sprockets. Direct Labor-Hours Annual por Unit Production 0.80 10,000 units 0.40 40,000 units Additional information about the company follows: 1. Hubs require $32 in direct materials per unit, and Sprockets require $18. 2. The direct labor wage rate is $15 per hour. 3. Hubs are more complex to manufacture than Sprockets and they require special equipment. 4. The system has the following department cost pools: Required: Department Cost Pool Hubs Sprockets Total Machining (machine-hours) 40,000 10,000 50,000 Special processing (number of setups) 15,000 10,000 25,000 1. Allocate the two service departments' costs to the two production departments using Step-down method. Ranking according to the percentage provided to the other support departments. 2. Compute the allocation rate for each department cost pool. 3. Determine the overhead cost for each product. 4. Determine the unit product cost of each product