General Factory Receiving Assembly Finishing Direct overhead $43,000 5,400 $74,000 5,400 Square footage $400,000 - 300 - $160,000 2,700 - - Number of receiving orders 1,020 1,680 25,000 Direct labor hours 40,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations. Allocation ratios: Assembly Finishing 0.4 x 0.4 X Square footage Number of receiving orders C D Allocations: Assembly Finishing General Factory Receiving Direct costs Total 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.) Overhead Rate Assembly 14 8 X per direct labor hour X per direct labor hour Finishing