Hi. Please provide explanation and solution in good form.

Bowden Outfitters manufactures a complete line of running shoes. The firm has three manufacturing departments: Molding, Component, and Assembly. There are also two service departments: Power and Maintenance. The soles of the shoes are manufactured in the Molding Department. The tops of the shoes are manufactured in the Component Department. The shoes are then completed in the Assembly Department. Varying amounts of materials, time, and effort are required for each of the shoe models. The Power Department and Maintenance Department provide services to the three manufacturing departments. Bowden has always used a plantwide overhead rate. Direct-labor hours are used to assign overhead to products. The predetermined overhead rate is calculated by dividing the company's total estimated overhead by the total estimated direct-labor hours to be worked in the three manufacturing departments. Christine Macguire, director of cost management, has recommended that Bowden use departmental overhead rates. The planned operating costs and expected levels of activity for the coming year have been developed by Macguire and are presented by department in the following schedules. (All numbers are in thousands.) Service Department Power Maintenance Departmental activity measures: Maximum capacity 1,000 kilowatt hours Adjustable Estimated wage for the coming year sco kilowatt hours 125 hours Departmental costs: Materials and supplies $ 6, OH $2,500 Variable labor 1,400 2,250 Fixed overhead 1.250 Total service department costs $6.000 Manufacturing Departments Molding Component Assembly Department activity measures: Direct-labor hours 1,500 300 2 560 Machine hours 1,875 1,125 Departmental costs: Direct material $12,400 $ 1,350 Direct labor 3,500 20.000 12,000 Variable overhead 4,500 1 1,000 20 500 Fixed overhead 18,500 1 200 T.100 Total departmental costs Use of service departments: Maintenance: Estimated wage in labor 40 10 hours for the coming year Power (in kilowatt-hours) Estimated wage for the 320 120 coming Year Miki man allotted capacity 500 350 150Required: 1. Calculate the plantwide overhead rate for Bowden Company for the coming year using the same method as used in the past. 2. Christine Macguire has been asked to develop departmental overhead rates for comparison with the plantwide rate. The following steps are to be followed in developing the departmental rates. a. The Maintenance Department costs should be allocated to the three manufacturing departments using the direct method. b. The Power Department costs should be allocated to the three manufacturing departments using the dual method combined with the direct method. Fixed costs are to be allocated according to maximum allotted capacity, and variable costs are to be allocated according to planned usage for the coming year. c. Calculate departmental overhead rates for the three manufacturing departments using a machine-hour cost driver for the Molding Department and a direct-labor-hour cost driver for the Component and Assembly departments