Dasea on square reet or space occupiea ana the maintenance cost is allocatea basea on macnine$-$nours.

$\backslash$table$[[,$Total Labor$-$ Square Feet of$,$Number of$,$Machine$-,$Direct Labor$-,],[$Department$,$Hours,Space Occupied,Employees,Hours,Hours$],[$Personnel$,16,100,12,800,23,,],[$Custodial Services,$8,900,3,800,13,,],[$Maintenance$,14,200,10,800,61,,],[$Printing$,30,600,40,500,110,170,000,11,000],[$Binding$,103,000,21,000,304,50,000,78,000],[,172,800,199,909,541,220,000,89,000]]$

Budgeted overhead costs in each department for the current year are shown below:

Personnel

Custodial Services

Maintenance

Printing

Binding

Total budgeted cost

Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments.

Required:

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 thours as the allocation base in the Printing Department and direct labor$-$hours as the allocation base in the Binding Department.

Repeat $(1)$ above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments.

Assume during the current year the company bids on a job requiring machine and labor time as follows:

$\backslash$table$[[,,],[,$Machine$-$Hours,Direct Labor$-],[$Printing Department,$2,100,1,500],[$Binding Department,$\frac{400}{13,100},],[$Total hours,$2,500,14,600]]$

a$.$ Calculate the overhead cost assigned to the job if the company used the overhead rates developed in $(1)$ above. Then calculate the overhead cost assigned to the job if the company used the overhead rates developed in $(2)$ above.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$A

Repeat requinement $1$ above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments.

Note: Please enter allocations from a department as negatve and allocations to a departinent as positive. The line should add across to zero. Do not round intermediate calculations. Round "Predetermined overhead rate" to $2$ decimal places and rest of the answers to the nearest whole dollar amount.

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