Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments-Molding and Assembly. The Molding Department employs 5 people, and the Assembly Department employs 81 people. Each person in these two departments works 1,000 hours per year. The production-related overhead costs for the Holding Department are budgeted at 1247,000, and the Assembly Department costs are budgeted at $3,000. Two support departments --Engineering and General Factory directly wipoort the two production departments and have budgeted costs of $244,000 and $360,000, respectively. The production departments overhead rates cannot be determined until the support departments costs are properly located. The following schedule reflects the use of the Engineering Department's and General factory Department's output by the various departments, Engineering General Factory Holding Assembly Engineering hours - 2.500 2,300 7,700 135,500 435.00 78,000 For all requirements, round Nocation ratios to four significant digits and round allocated costs to the nearest dollar Rewired: 1. Cut the vertes per direct labor hour for the Holding Department and the Assemble nearest com ment using the direct wocation method to charpe the production dates for soport department costs found i wwers to the Overhead rate per 2. Calculate the reades per director hour for the Holding Department and the Assembly Department using the reciproca ch other and to the production department Hound final Overhead rate per LN 3. Explain the dirence between the macho, indicate the sun generally presented to support the reciprocal method over the direct action method. (C a ted) Direct Method, Reciprocal Method, Overhead Rates Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments-Molding and Assembly. The Molding Department employs 5 people, and the Assembly Department employs 81 people. Each person in these two departments works 1,000 hours per year. The production-related overhead costs for the Holding Department are budgeted at 1247,000, and the Assembly Department costs are budgeted at $3,000. Two support departments --Engineering and General Factory directly wipoort the two production departments and have budgeted costs of $244,000 and $360,000, respectively. The production departments overhead rates cannot be determined until the support departments costs are properly located. The following schedule reflects the use of the Engineering Department's and General factory Department's output by the various departments, Engineering General Factory Holding Assembly Engineering hours - 2.500 2,300 7,700 135,500 435.00 78,000 For all requirements, round Nocation ratios to four significant digits and round allocated costs to the nearest dollar Rewired: 1. Cut the vertes per direct labor hour for the Holding Department and the Assemble nearest com ment using the direct wocation method to charpe the production dates for soport department costs found i wwers to the Overhead rate per 2. Calculate the reades per director hour for the Holding Department and the Assembly Department using the reciproca ch other and to the production department Hound final Overhead rate per LN 3. Explain the dirence between the macho, indicate the sun generally presented to support the reciprocal method over the direct action method. (C a ted)