Highland Publishing Company is a large organization offering a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order llsted below. The Personnel cost is allocated based on number of employees. The Custodial Services cost is allocated based on square feet of space occupled and the Maintenance cost is allocated based on machine hours. Budgeted overhead costs in each department for the current year are shown below: Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. 3. Assume during the current year the company bids on a job tequiring machine and labor time as follows: Highland Publishing Company is a large organization offering a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order llsted below. The Personnel cost is allocated based on number of employees. The Custodial Services cost is allocated based on square feet of space occupled and the Maintenance cost is allocated based on machine hours. Budgeted overhead costs in each department for the current year are shown below: Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the allocation base in the Binding Department. 2. Repeat (1) above, this time using the direct method. Again compute predetermined overhead rates in the Printing and Binding departments. 3. Assume during the current year the company bids on a job tequiring machine and labor time as follows