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Direct: Method, Reciprocal Method, Overheed Rates: Mocalister Corporation is developing departmental overtiesd ratess based on di rect labor hours for its two production departments-Molding and

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Direct: Method, Reciprocal Method, Overheed Rates: Mocalister Corporation is developing departmental overtiesd ratess based on di rect labor hours for its two production departments-Molding and Acsembly. The Molding Department employs 20 people, and the Assembly Department employs 75 people. Each person in these two depertments works 1,940 hours per. year. The production-telated overhead couts For the Molding Department are budgeted at $247,000, and the Assembly Department costs are budgeted at 386,000. Two support departments-Engineering and General Factory-directly support the two production departments and have budgeted costs of sa.08,00i and 5355,000 , respectively. The production departments' overheod retes cannot be determined unta the support departments' costs are propeirly a located. The following schedule refiects the use of the Engineering Depsitment's and General Foctory Department's output by the various departiments. For ofl requirements, round allocation ratios to four significant digits and round allocoted costs to the fearest doilia. Required: 1. Calculate the overhead rates per direct Iabor hour for the Molding Deportment and the Assembly Department using the direct allocation mothod to charge the production departments for suppert department costs. Round finat answers to the nearest cent. 1. Calculate the overhesd rotes per direct labor houn fur the Moiding Departement and the Aasembly Oopartinent using the dirnet a location method fo charge the productson departments for support department costs, Mound find answers to the neareit cent. 2. Calculate the overnead rates per direct labor hour for the Molding Department ond the Masembry Depsrtiment using the regprical method tas charge support department costs to eoch other and to the peeduction departments. Hibund final answers to the nearent cent. Acurd your intermodiate caloulabions to four decimat placests. 3. Exploin the difference between the midheds, and indicate the arguments generaily prisented to wpport the rooprocit method ower the direct aikeation method. (cus adseted)

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