FSI Company allocates support department costs to production departments before establishing predetermined overhead rates for use in product costing.

Eng Support costs are allocated to productive departments based on time of service while IT costs are allocated based on IT hours

Department	EngSupport	IT	Cutting	Finishing	Total
Departmental Overhead	1,000,000	2,000,000	4,000,000	2,500,000	9,500,000
Time of service	40	100	1200	700	2040
IT hours	1,000	2,000	8,500	11,500	23,000

Cutting uses machine hours as a base for overhead allocation and expects to use 60,000 MH this year

Finishing uses direct labor as a base for overhead allocation and expects to use 90,000 DLH this year.

During the year job 280 is completed The job required:

Cutting	Finishing
DLH 500	250
MH 600	400

1.Complete a cost allocation calculation/table using the step method to put all overhead amounts into the productive departments

2. Calculate the predetermined overhead rates for the productive departments

3.Calculate the total overhead applied to job 280