Department	Total Labor-Hours	Square Feet of Space Occupied	Number of Employees	Machine-Hours	Direct Labor-Hours
Personnel	16,900	12,200	27
Custodial Services	8,200	3,700	48
Maintenance	14,500	10,800	63
Printing	30,700	40,300	110	161,000	15,000
Binding	106,000	20,500	301	43,000	73,000
	176,300	87,500	549	204,000	88,000

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

Personnel	$ 320,000
Custodial Services	65,900
Maintenance	93,700
Printing	412,000
Binding	160,000
Total budgeted cost	$ 1,051,600

	Machine-Hours	Direct Labor-Hours
Printing Department	2,300	1,100
Binding Department	700	13,700
Total hours	3,000	14,800

a. Determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (1) above. Then determine the amount of overhead cost that would be assigned to the job if the company used the overhead rates developed in (2) above.

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. (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" to 2 decimal places and rest of the answers to the nearest whole dollar amount.)

	Personnel	Custodial Services	Maintenance	Printing	Binding
Departmental costs before allocations	$320,000	$65,900	$93,700	$412,000	$160,000
Allocations:
Personnel costs
Custodial services costs
Maintenance costs
Total costs after allocations	320,000	65,900	93,700	412,000	160,000
Predetermined overhead rate